This study attempts to examine the causal relationship between money supply and stock prices in Pakistan economy using monthly data from June 1991 to June 1999 and applying Co-integration and Error Correction Models. The Co-integration analysis suggests that, in general, there exist a long run...

This paper examines the causal relationship between money supply and stock prices. The analysis indicates a long-run relationship between stock prices and money supply. The analysis further indicates unidirectional causality from Money Supply to KSE 100 Index both in the short run and in the...

This study extends the analysis of causality by Husain and Rashid (2008) by examining the shift in the variables due to the price hikes in Pakistan in the early 1970s. We investigate the causal relations between real money and real income, between nominal money and nominal income, and between...