ECO610 - Issues in the Economy of Pakistan

Total Marks 5 Starting Date Wednesday, January 22, 2020 Closing Date Monday, January 27, 2020 Status Open Question Title Monetary Policy, Savings and Inflation Question Description The financial repression school argues that low or negative real interest rates along with high and variable inflation rates are the major barriers to savings. Whereas, according to financial structure school, low savings rate, particularly in developing countries, exists because of lack of depth and breadth in financial sector. Requirement: Discuss which school of thought defines the reason of low saving rates in Pakistan. Justify your answer with logical arguments.