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Investigating the Real Shocks in the Discount Rate of Pakistan

Author

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  • Muhammad Yasir

    () (Iqra University)

Abstract

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 stationarity. 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.

Suggested Citation

  • Muhammad Yasir, 2015. "Investigating the Real Shocks in the Discount Rate of Pakistan," South Asian Journal of Management Sciences (SAJMS), Iqra University, Iqra University, vol. 9(1), pages 10-14, Spring.
  • Handle: RePEc:ajm:journl:v:9:y:2015:i:1:p:10-14
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    File URL: http://sajms.iurc.edu.pk/issues/2015a/Spring2015V9N1P2.pdf
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    References listed on IDEAS

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    9. Kathleen Hope Brown, 1981. "Effects of Changes in the Discount Rate on the Foreign Exchange Value of the Dollar: 1973 to 1978," The Quarterly Journal of Economics, Oxford University Press, vol. 96(3), pages 551-558.
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    Cited by:

    1. Abbas, Tahir & Ali, Ghaffar & Adil, Sultan Ali & Bashir, Muhammad Khalid & Kamran, Muhammad Asif, 2017. "Economic analysis of biogas adoption technology by rural farmers: The case of Faisalabad district in Pakistan," Renewable Energy, Elsevier, vol. 107(C), pages 431-439.

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    Keywords

    Real shocks; discount rate.;

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