The decline in money supply
indicates bank lending to private and public sectors is falling, due to decrease in domestic demand.
The apex bank also said that the slowing rate of money supply
would however not affect the country's relatively fast growth.
The money supply
aggregate M2 - a calculation of money supply
that includes all the elements of M1 as well as savings deposits and other money market instruments such as fixed deposits which are less liquid - increased by 2.
The rise in Money Supply
Aggregate M1 is attributable to an increase of Dh2.
The analysis distinguishes between short- and long-run causality, and, importantly for the conclusions of this paper, identifies the long-run relationship between output and the money supply
After the introduction in the first section, Section II provides a profile about the money supply
and inflation trends in Pakistan.
However money demand and money supply
dynamics determines interest rates, which consequently impact a country's monetary policy objectives.
According to QNB Group, Qatar recorded the highest money supply
growth rate in the region during the first quarter of 2013 (37.
Key words: Money Supply
, Trading Volume, KSE-100 Index
26, 2012 (CENS) -- With inward remittance of foreign funds boosting the amount of demand deposits at banks, the annual growth rate of M1B, money supply
in narrower definition, advanced to 3.
That is, to increase the level of base money in the hopes of increasing the rate of broad money supply
growth and inflation.
The main driver of money supply
growth is credit expansion.