IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v2y2012i8p983-990id944.html
   My bibliography  Save this article

Impact of Real Effective Exchange Rate on Inflation in Pakistan

Author

Listed:
  • Imrana Asad
  • Nisar Ahmad
  • Zakir Hussain

Abstract

The determination of inflation is widely debated all over the world. The macroeconomic variables namely: money supply, income velocity of circulation, real effective exchange rate and real income of the economy are the main affect of inflation. The objective of the study was to investigate the impact of real effective exchange rate on inflation in Pakistan. The time series data of real GDP, nominal GDP, real effective exchange rate, prices and money supply for the period of 1973 to 2007 was used in the study. It was concluded that the real effective exchange rate has impact upon inflation in Pakistan. The correlation matrix of the explanatory variables was calculated to establish the relationship among real effective exchange rate and with other variables. A positive and strong relationship between the real effective exchange rate and inflation was found.

Suggested Citation

  • Imrana Asad & Nisar Ahmad & Zakir Hussain, 2012. "Impact of Real Effective Exchange Rate on Inflation in Pakistan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(8), pages 983-990.
    • Handle: RePEc:asi:aeafrj:v:2:y:2012:i:8:p:983-990:id:944
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/944/1428
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Uddin , Ijaz, 2020. "What determine inflation in Pakistan: an investigation through structural equation modeling by using time series data for a period from 1975 to 2017," Economic Consultant, Roman I. Ostapenko, vol. 32(4), pages 54-72.
    2. Sulaiman L A & Lawal N A & Migiro S O, 2018. "Comparative Analysis of Monetary Policy Shocks and Exchange Rate Fluctuations in Nigeria and South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(6), pages 199-207.
    3. Nabila Khurshid & Chinyere Emmanuel Egbe & Asma Fiaz & Amna Sheraz, 2023. "Globalization and Economic Stability: An Insight from the Rocket and Feather Hypothesis in Pakistan," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    4. Babatunde .Wasiu. ADEOYE & Olufemi Muibi SAIBU, 2014. "Monetary Policy Shocks and Exchange Rate Volatility in Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(4), pages 544-562, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:2:y:2012:i:8:p:983-990:id:944. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.