This paper attempts to investigate the linkage between the excess money supply growth and inflation in Pakistan and to test the validity of the monetarist stance that inflation is a monetary phenomenon. The results from the correlation analysis indicate that there is a positive association between money growth and inflation. The money supply growth at first-round affects real GDP growth and at the second round it affects inflation in Pakistan. The important finding from the analysis is that the excess money supply growth has been an important contributor to the rise in inflation in Pakistan during the study period, thus supporting the monetarist proposition that inflation in Pakistan is a monetary phenomenon. This may be due to the loose monetary policy adopted by the State Bank of Pakistan to show the high priority of the growth objective. The important policy implication is that inflation in Pakistan can be cured by a sufficiently tight monetary policy. The formulation of monetary policy must consider development in the real and financial sector and treat these sectors as constraints on the policy.

Money, Inflation, and Growth in Pakistan

Construction project involves a complex array of specific interdependent activities, undertaken by multiple participants with contradictions of interests. It has phases to follow in its life cycle to meet the project’s objectives. Each phase will typically have multiple sub-phases and processes. The choice of technological and organizational solutions is carried out in the planning and design phase. Changes affecting any task (or the need to resolve conflicting elements of two or more tasks) can have a significant knock-on effect on the project’s success, regardless of the phase of the life cycle. This paper intends to develop an integral model of organizational and technological solutions, which allows to choose the optimal criteria for Burundian capital master plan as well as monitoring the quality of their implementation.

Integrated Quality Index of Organizational and Technological Solutions for Implementation of Burundian Capital Master Plan

This study assessed the effectiveness of monetary transmission mechanism in Rwanda. On the basis of the specified VAR/VEC models, an interest rate channel, exchange rate channel and credit channel have been identified by using the time series (quarterly) data  from National Bank of Rwanda and the macroeconomic variables (Output, CPI inflation,, repo rate, International oil price and money supply) from 2000Q1 to 2015Q4. The study has the specific objectives which are to estimate the dynamic influence of interest rate channel of monetary transmission mechanism on economic growth, to estimate the effect of exchange rate channel of monetary transmission mechanism on economic growth, to determine the effect of credit channel of monetary transmission mechanism on economic growth and to determine the effect of CPI, M3, REPORATE and international price oil on economic growth This study first employed the stationary and co-integration techniques in order to determine if there exists a long-run relationship among the variables. The results from the variance decomposition revealed that in long run the credit channel will be effective more than other channels of monetary transmission mechanism by affecting the RGDP with a shock of 52.15% in long run at 64 th period followed by interest rate channel with a shock of 5.8% and lastly by exchange rate channel with a shock of 5.3% in long run at 64 th period. But in short run at 1 st period the interest rate channel is more effective with a shock of 13.75% on GDP followed by exchange rate channel and lastly credit channel with a shocks of 2.62% and 2.25% on GDP respectively. There is need for constant revision of policy and instruments targeting framework and operating procedure to enhance monetary policy effectiveness particularly in stabilizing the exchange rate and keeping inflation levels at the generally recommended rate. There is need for BNR to harmonize and combine the functionality of all channels to achieve optimum output goals of monetary transmission mechanism. The study suggests further research on analysis on interest rate channel when interacted with financial innovation variable on asset prices.  The further research could do also on the analysis of asset price channel on economic growth of Rwanda.

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EmmanuelBahati Ngarambe

Papers

Monetary policy and inflation control in rwanda; 2006-2015