Monetary Policy Strategies For State Bank Of Pakistan
Author: Rubab Khan

The general monetary policy strategies of the “forecast target” are most appropriate for state banks to meet the dual mandate of price stability and maximum employment. Forecast targeting are used for these specific strategies such as annual inflation targeting, price-level targeting, temporary price-level targeting, average inflation targeting, and nominal-GDP targeting. Such strategies were studied how they achieve the dual mandates of the SBP, considering the possibility of flatter Phillips’s curve and effective lower bound bind. Compared all the strategies to find minimum loss function. We used annual data from 1970 to 2020. Nominal GDP targeting is considered inferior to the other strategies because it has some basic and practical disadvantages. It has only one mandate. Average inflation has several benefits over the other strategies. Supervisor:- Dr. Ahsan-ul-Haq Satti

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Supervisor: Ahsan ul Haq Satti

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