Income, Money, and Prices in Pakistan: Trends and Interrelationship

Income, Money, and Prices are important macroeconomic variables which play crucial roles in an economy. There has been a long debate in economics regarding their roles. For example, the Monetarists claim that money plays an active role and leads to changes in income and prices. In other words, changes in income and prices in an economy are mainly caused by the changes in money stocks. The Keynesians, on the other hand, argue that money does not play an active role in changing income and prices. In fact, changes in income cause changes in money stocks via demand for money. Similarly, changes in prices are mainly caused by structural factors. Although there is disagreement among economist on the roles of income, money, and prices as well as their interrelationship, these variables are considered important and large amount of literature in economics deals with these variables. The purpose of this paper is to look at the trends of these variables in Pakistan’s economy over fifty years. We also look at the components of these variables as well as their interrelationship.

Another look at the credit-output link

Credit ; Monetary policy

Empirical comparisons of credit and monetary aggregates using vector autoregressive methods

An abstract for this article is not available.Monetary policy

Income, Money and Prices in Pakistan: Trends and Interrelationship

This paper attempts to look at the trends in income, money, and prices in Pakistan over the years. In addition, we also look at the components of, as well as interrelationship among, these variables. Annual data from 1949-50 to 1998-99 are used and the period is further divided into five decades. The analyses show a greater expansion in these variables in the 1970s. However, these expansions can be attributed to phenomenal expansions in prices. Real income, on the other hand, improved marginally. Real income expanded significantly in the 1960s and remained stable till the 1980s but significantly declined in the 1990s. This is an alarming situation and requires suitable remedial measures. Similarly, the analyses show a significant decline in NFI in the 1990s. In fact, it has been negative for the last four years indicating capital outflow from the country which is also alarming. The analyses also indicate a significant difference between measures of money, M1 and M2, in the 1990s due to the opening of foreign currency deposits. The opening of foreign currency deposits has also affected the demand deposits and there seems to be shifting of funds between the two deposits. Finally, the correlation analyses indicate a little role of money in changing income as well as prices. On the other hand, money seems to be significantly affected by nominal income, particularly by three years back level of income. Regarding price, it seems to have a small association with money.Income; Money; Prices; Pakistan; Trends; Relationship

Does Anticipated Aggregate Demand Policy Matter? Further Econometric results.

A heated debate has arisen over what Modigliani has dubbed the Macro Rational Expections (MRE) hypothesis. This hypothesis embodies two component hypotheses: 1) rational expectations and 2) short-run neutrality -- i.e., that anticipated changes in aggregate demand will have already been taken into account in economic agents' behavior and will thus evoke no output or employment response. Together these component hypotheses imply that deterministic feedback policy rules will have no effect on business cycle fluctuations. The irrelevance of these types of policy rules is inconsistent with much previous macro theorizing as well as with the views of policymakers. It is thus an extremely controversial proposition which requires a wide range of empirical research. This paper is a sequel to a previous paper by the author. That paper developed a methodology for testing the MRE hypothesis and found that anticipated money growth does matter to the business cycle. This paper extends the analyses to cases where the rate of nominal GNP growth or the inflation rate, rather than money growth, is the aggregate demand variable. The empirical results are also negative on the MRE hypothesis and its corresponding policy ineffectiveness proposition.

Overnight Cost Estimation Ofindonesia's Cogeneration Power Plant for Industrial Processes

Indonesia's cogeneration power plant for industrial processes (PeLUIt) is needed to be implemented in Indonesia. Economic analysis is an important factor for PeLUIt implementation. One of the data that needs in the analysis is overnight cost. This research estimates HTGR's overnight cost by using scaling law.By using the estimated value, it can be calculated the PeLUIt overnight cost. The research's purpose is to obtain an estimation of overnight costs of PeLUIt. The estimation result shows the overnight cost of PeLUIt. PeLUIt 10 MWth has an overnight cost 166,26 million USD. PeLUIt 30 MWth has an overnight cost 233,49 million USD. PeLUIt 50 MWth has an overnight cost 281,31 million USD. PeLUIt 100 MWth has an overnight cost 371,86 million USD. PeLUIt 350 MWth has an overnight cost 657,16 million USD

Cords and 1-handles attached to surface-knots

J. Boyle classified 1-handles attached to surface-knots, that are closed and connected surfaces embedded in the Euclidean 4-space, in the case that the surfaces are oriented and 1-handles are orientable with respect to the orientations of the surfaces. In that case, the equivalence classes of 1-handles correspond to the equivalence classes of cords attached to the surface-knot, and correspond to the double cosets of the peripheral subgroup of the knot group. In this paper, we classify cords and cords with local orientations attached to (possibly non-orientable) surface-knots. And we classify 1-handles attached to surface-knots in the case that the surface-knots are oriented and 1-handles are non-orientable, and in the case that the surface-knots are non-orientable.Comment: It will appear in Boletin de la Sociedad Matematica Mexican

Influence of Grain Boundary Character on Creep Void Formation in Alloy 617

Alloy 617, a high temperature creep-resistant, nickel-based alloy, is being considered for the primary heat exchanger for the Next Generation Nuclear Plant (NGNP) which will operate at temperatures exceeding 760oC. Orientation imaging microscopy (OIM) is used to characterize the grain boundaries in the vicinity of creep voids that develop during high temperature creep tests (800-1000oC at creep stresses ranging from 20-85 MPa) terminated at creep strains ranging from 5-40%. Observations using optical microscopy indicate creep rate does not significantly influence the creep void fraction at a given creep strain. Preliminary analysis of the OIM data indicates voids tend to form on grain boundaries parallel, perpendicular or 45o to the tensile axis, while few voids are found at intermediate inclinations to the tensile axis. Random grain boundaries intersect most voids while CSL-related grain boundaries did not appear to be consistently associated with void development

The market for protection and the origin of the state

We examine a stark setting in which security or protection can be provided by self-governing groups or by for-profit entrepreneurs (kings, kleptocrats, or mafia dons). Though selfgovernance is best for the population, it faces problems of long-term viability. Typically, in providing security the equilibrium market structure involves competing lords, a condition that leads to a tragedy of coercion: all the savings from the provision of collective protection are dissipated and welfare can be as low as, or even lower than, in the absence of the state