relationship between money supply and inflation in pakistan
The result of one to one relationship between the growth rate of money supply and the rate of inflation is consistent with the other studies such as McCandless and Weber (1995), Rolnick and Weber (1994) and Lucus (1980), among others.e tested this hypothesis that inflation and money growth relative to real income are proportional. The results presented in the following equation indicate that there is one to one relationship between the inflation and money growth relative to real income in Pakistan.