Impact Of Monetary Policy On Socioeconomic Indicators: A Case Study Of Developing Countries
Author: Zeeshan Fazal

Monetary policy is primarily used to control inflation and to stabilize the economy but is usually conducted without keeping in perspective of socioeconomic consequences. But in reality monetary policy is associated with number of socioeconomic indicators such as unemployment; poverty and inequality. The literature shows that monetary policy can have an impact on socioeconomic indicators. However, the phenomenon by which monetary policy impact socioeconomic indicators cannot get due attention of the researchers due to which results suffer numerous estimation problems of missing variables bias and simultaneity bias. Our study has explored the impact of monetary policy on socioeconomic indicators with the help of structural equation modeling taking into account variety of causal channels present in literature in which monetary policy affects socioeconomic indicators. For this purpose cross sectional data of year 2005 and 2015 is taken for 61 and 57 countries respectively of the variables involved in different channels of monetary policy. We conclude that monetary policy significantly impact socioeconomic indicators. Supervisor: Dr. Atiq-ur-Rehman

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Supervisor: Atiq Ur Rahman

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