ISSN 2394-5125
 

Research Article 


MACROECONOMIC SHOCKS: SHORT-RUN VERSUS LONG-RUN PERSPECTIVES

M. Fahad Malik, Masood Sarwar Awan, Waseem Shahid Malik.

Abstract
Shocks that stem from goods and money markets are supposed to be effective as there exists some time lag for
economic agents to realize their true impacts. These shocks can induce uncertainty about key macroeconomic
variables such as CPI inflation and real GDP growth. Impacts of shocks originating from nominal and real
variables are computed, evaluated and compared under short-run as well as under long-run restrictions for CPI
inflation and real GDP for countries with varying resource structures. Structural VAR models are employed in
order to functionalize short-run and long-run restrictions. Impulse responses are computed to analyze effects of
nominal and real shocks on CPI inflation and real GDP in short-run as well as in long-run. Variance
decompositions are done to locate main sources of uncertainties in CPI inflation and real GDP. Shocks from
product market appeared to be more pervasive in comparison to shocks from money market.

Key words: CPI inflation, real GDP, aggregate demand shock, aggregate supply shock, money demand shock, money supply shock.


 
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How to Cite this Article
Pubmed Style

M. Fahad Malik, Masood Sarwar Awan, Waseem Shahid Malik. MACROECONOMIC SHOCKS: SHORT-RUN VERSUS LONG-RUN PERSPECTIVES. JCR. 2021; 8(1): 563-577. doi:10.31838/jcr.08.01.61


Web Style

M. Fahad Malik, Masood Sarwar Awan, Waseem Shahid Malik. MACROECONOMIC SHOCKS: SHORT-RUN VERSUS LONG-RUN PERSPECTIVES. http://www.jcreview.com/?mno=52951 [Access: February 06, 2021]. doi:10.31838/jcr.08.01.61


AMA (American Medical Association) Style

M. Fahad Malik, Masood Sarwar Awan, Waseem Shahid Malik. MACROECONOMIC SHOCKS: SHORT-RUN VERSUS LONG-RUN PERSPECTIVES. JCR. 2021; 8(1): 563-577. doi:10.31838/jcr.08.01.61



Vancouver/ICMJE Style

M. Fahad Malik, Masood Sarwar Awan, Waseem Shahid Malik. MACROECONOMIC SHOCKS: SHORT-RUN VERSUS LONG-RUN PERSPECTIVES. JCR. (2021), [cited February 06, 2021]; 8(1): 563-577. doi:10.31838/jcr.08.01.61



Harvard Style

M. Fahad Malik, Masood Sarwar Awan, Waseem Shahid Malik (2021) MACROECONOMIC SHOCKS: SHORT-RUN VERSUS LONG-RUN PERSPECTIVES. JCR, 8 (1), 563-577. doi:10.31838/jcr.08.01.61



Turabian Style

M. Fahad Malik, Masood Sarwar Awan, Waseem Shahid Malik. 2021. MACROECONOMIC SHOCKS: SHORT-RUN VERSUS LONG-RUN PERSPECTIVES. Journal of Critical Reviews, 8 (1), 563-577. doi:10.31838/jcr.08.01.61



Chicago Style

M. Fahad Malik, Masood Sarwar Awan, Waseem Shahid Malik. "MACROECONOMIC SHOCKS: SHORT-RUN VERSUS LONG-RUN PERSPECTIVES." Journal of Critical Reviews 8 (2021), 563-577. doi:10.31838/jcr.08.01.61



MLA (The Modern Language Association) Style

M. Fahad Malik, Masood Sarwar Awan, Waseem Shahid Malik. "MACROECONOMIC SHOCKS: SHORT-RUN VERSUS LONG-RUN PERSPECTIVES." Journal of Critical Reviews 8.1 (2021), 563-577. Print. doi:10.31838/jcr.08.01.61



APA (American Psychological Association) Style

M. Fahad Malik, Masood Sarwar Awan, Waseem Shahid Malik (2021) MACROECONOMIC SHOCKS: SHORT-RUN VERSUS LONG-RUN PERSPECTIVES. Journal of Critical Reviews, 8 (1), 563-577. doi:10.31838/jcr.08.01.61