More importantly, DSGE models do not always provide a plausible story for observed economic developments. For example, so-called “technology shocks” tend to play an overwhelmingly important role in accounting for the evolution of GDP, even when external data do not show any evidence of technological innovations. Moreover, DSGE models can only slowly be adapted to a new policy environment.
13 of 1984 that called for elimination of Riba from the banking system and in January 1, 1985 all financing to Federal and Provincial Governments, public sector corporations and public or private joint stock companies was directed to be only through interest-free modes. viii. From July 1, 1985 all commercial banking in Pak Rupees was made interest free.