Short and Long Run Effects of Monetary Policy on Food Inflation: A Study of Pakistan

Food plays a major role in the consumption basket of developing countries such as Pakistan, with significant portion insufficient income poor individuals spending on food. Therefore, higher food inflation severely affects purchasing power people. This study is designed to estimate short and long-run impacts monetary policy Pakistan. For this purpose, time series data from September 2005 October 2020 was used through Autoregressive Distributed Lag (ARDL) model. The findings indicate that can become stable by restrictive both long run. results show short-run shocks be adjusted at speed 13.9% per month. To tackle inflation, balanced suggested. On other hand, fiscal providing subsidized items people also implemented