Macroeconomic Management

2014 ◽  
Keyword(s):  
Macroeconomic Management

scholarly journals Pakistan: Breaking Out of Stagflation into Sustained Growth

2011 ◽  
Vol 16 (Special Edition) ◽  
pp. 13-30 ◽  
Author(s):  
Rashid Amjad ◽  
Musleh ud Din Musleh ud Din ◽  
Abdul Qayyum Abdul Qayyum
Keyword(s):  
Output Growth ◽  
Current Debate ◽  
Safety Nets ◽  
Supply Shocks ◽  
Fiscal Balance ◽  
The Government ◽  
Role Of The Government ◽  
Social Safety Nets ◽  
Macroeconomic Management

This paper proposes that the underlying cause of the macroeconomic problems facing Pakistan today are a series of supply shocks which have constrained output growth. It is argued that while the current debate has solely focused on government expenditures and revenues, it is critical to also address the acute energy shortages which is constraining supply. The paper goes on to present four recommendations for breaking out of the present stagflation: (i) prudent macroeconomic management, (ii) reviving the role of the government in development while restoring fiscal balance, (iii) loosening monetary policy in order to spur the private sector, and (iv) improving social safety nets.

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