Investigating the Real Shocks in the Discount Rate of Pakistan
The monetary-policy always has a vital role in determination of the economic conditions of any country, It is witnessed that the discount rate announced in year 1948 was of 3%, while the discount rate announced in year 2013 has come to be at 10%. The research aims to investigate Real Shocks in the Discount Rate of Pakistan, where by 66 years of historical data of the discount rate in Pakistan is tested using the Augmented Ducky Fuller test in-order to determine the stationary. The outcomes of the results of this study demonstrate that the discount rate of Pakistan is non-stationary in nature which confirms that there is a real shock in the discount rate of Pakistan for 1948-2013.