The P-star inflation model is based on the long-term quantity theory of money and puts together the long term determinants of the price level and the short run changes in current inflation. The P-star model based indicator has replaced the previous monetary policy procedures in a number of...

In this study an attempt has been made to develop and estimate the domestic credit policy reaction function to analyse the monetary implications of interventions and sterilisation policy in Pakistan using quarterly data ranging from 1982 Q3 through 2001 Q2. By employing Johansen multivariate...