TY  - JOUR
TT  - Determinants of Deviation from Inflation Targets in Pakistan: A Vector Autoregressive Approach
AU  - Jabeen, Sunila
AU  - Shaheen, Farzana
AU  - Haider, Azad
PY  - 2015
DA  - September
JF  - International Journal of Economics and Financial Issues
JO  - IJEFI
PB  - İlhan ÖZTÜRK
WT  - DergiPark
SN  - 2146-4138
SP  - 709
EP  - 715
VL  - 5
IS  - 3
KW  - State Bank of Pakistan
KW  - Inflation
KW  - Real Effective Exchange Rate
KW  - Impulse Response
KW  - Variance Decomposition
N2  - State Bank of Pakistan (SBP) has mandate of price stability along with output growth. However, inflation deviation from the announced target is common. Employing impulse response functions and variance decomposition, over the period, 1991Q1-2007Q4,this paper attempts to explain why inflation targets have been missed in Pakistan. The results are indicative that inflation gap responds to shocks in government credit from State Bank, world crude oil price, real effective exchange rate and money supply. The response is more prominent in case of government credit from central bank. On the other hand, variance decomposition analysis suggests that most of the variation in deviation from the target is explained by its own lagged values followed by variation in government loan from central bank.
UR  - https://dergipark.org.tr/tr/pub/ijefi/issue//352177
L1  - https://dergipark.org.tr/tr/download/article-file/363053
ER  -