Abstract

Economic crises play an important role in regulating the stability and trends in the growth of a country. In the world of economy economics crises is a still critical challenge for economists because of their multidimensionality and instead of involving single variable that causes an impact economic crises involves a wide range of variables. The main objective of this research is to investigate the problematic relationship between economic variables such as Money Supply (MS), Interest Rate (IR), Inflation (I), Unemployment (U), and Political Stability (PS). By using econometric analysis methods and data analysis skills this research aims to establish how the above-mentioned variables play their role in affecting economic growth or development and political stability of a country. Moreover, the main focus of this study in on Pakistan and to examine the adverse effects of different economic variables on the growth ability of a country.