IMPACT OF MONEY SUPPLY ON ECONOMIC GROWTH OF PAKISTAN

Abstract

Purpose: The purpose of this study is to find out the factors as how the money supply has an impact on the economic growth. Various variables of money supply and economy growth were analyzed and the conditions in which the money supply would increase and decrease with positive and negative impact on economy was also analyzed. Methodology: This research approach is explanatory, where it will find the impact and relationship. The research is quantitative in nature and data is secondary which is collected of the past 11 years. Findings: All the test in this research were conducted at significant level 0.05. Finding of this research result shows, that independent variable of FDI and remittances has direct impact on dependent variable GDP. In independent variable only remittances has direct impact on dependent variable CPI. The external debt which is the independent variable has direct contributions on the employment which is dependent variable. Practical Implications: This research would help the government to make the monetary and fiscal policies. This also would help to the researchers and student as well.