THE PAKISTAN DEVELOPMENT REVIEW
The Demand for Money in Pakistan: Some Further Results
This paper thoroughly analyses the demand aspect of the money market and examines the determinants of the demand for money in Pakistan over the period extending from 1959-60 to 1977-78. Besides income and rate of interest on time deposits, the expected rate of inflation and degree of monetization appear to be the most Important explanatory variables in the demand for money in Pakistan. The estimated function did not exhibit marked instability and can, therefore, be I1IOd for forecasting the money stock.