Pakistan constitutes a valuable case study for investigating the dynamics of persistently high rates of deficits. The budget and trade deficits occurred concurrently with acute macro economic imbalances and indebtedness, which is a major cause of concern. In Pakistan, little is known with authenticity, about the channels through which changes in these deficits percolate the macroeconomic system. Most of the studies conducted outside Pakistan, assert, some support for the maintained proposition that budget deficit, in so for lead to increase in money supply do cause inflation...
Pakistan constitutes a valuable case study for investigating the dynamics of persistently high rates of deficits. The budget and trade deficits occ...