Constructive Role of Idle Cash in Pakistan: An Empirical Analysis
Journal Title: Pakistan Journal of Economic Studies - Year 2022, Vol 5, Issue 2
Abstract
Idle cash is a short-run phenomenon that turns into active cash and enhances the pace of economic growth. People for short period keep away a part of their cash from the running flow of transaction and injects it into transactions or speculative stream in long run. Low-interest rate discourages savers to earn money so people prefer to keep their money at home. Savers wait to make a positive investment in the long run. In this paper dual estimation techniques i.e., Frequentist and Bayesian are applied over the time period of 1995-2018 in the case of Pakistan. Findings show that households’ idle cash has a positive impact on the economic growth of Pakistan. On the basis of findings, it can be recommended that a safe investment environment should be provided to households as it will not only enhance the growth of Pakistan’s economy but also tackle other problems like unemployment and poverty.
Authors and Affiliations
Isma Ishtiaq, Mehr u Nisa Ishtiaq
Keywords
Related Articles
- EP ID EP735717
- DOI -
- Views 69
- Downloads 0
The Effect of Fiscal Decentralization on Sectoral Green Total Factor Productivity in Pakistan: An Empirical Evidence
The study endeavors to measure sectoral Green Total Factor Productivity (GTFP) and the role of fiscaldecentralization and key environmental regulations in affecting GTFP, for the manufacturin...
Policies Misalignment in Pakistan: Implications for Output Gaps
Objective: Adjusting macroeconomic, monetary, and fiscal policies to maximize growth requires reliable production gap estimates. This research aims to determine sector-wise output gaps and their impact on macroeconomic p...
The Foreign Remittances, Long Term Sustainable Economic Growth Nexus in Pakistan: An Empirical Analysis Using Bound Testing Approach
Remittances are considered vital for the progress of any economy. These are the finances that are sent by the immigrants and assist the nations to achieve their basic needs and to boost the living standard. This resea...
The Conduct of Monetary Policy in Pakistan
The conduct of monetary policy is not a frictionless combination of monetary operations as in the case of Keynesian demand for liquidity, nor as mechanical as under the New Keynesian Taylor Rule. Ignoring the issue of ou...
Impact of Foreign Exchange Reserve on Exchange Rate in Selected South Asian Economies
The significance of exchange rate and its influence on economic stability, productiveness, and trade patterns. Our study is the first in Selected South Asian Association for Regional Corporation (SAARC) countries...