Some Econometric Evidence on the Relative Importance of Monetary and Fiscal Policy in Pakistan (Monetary AND FISCAL Policy) (Report‪)‬

I. INTRODUCTION Economists agree that both monetary and fiscal policies can influence the pace of aggregate economic activity. However, their relative importance still remains a widely debated and complicated issue. Given the mushroom growth of different types of economic models, it seems almost impossible to decide their relative importance, at a purely theoretical level. So in this paper, we have tried to deal with this issue empirically in the context of Pakistan.