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From Fear of Floating to Benign Neglect: The Exchange Rate Regime Roller Coaster in Pakistan

Author

Listed:
  • Syed Kumail Abbas Rizvi

    (Lahore School of Economics, Pakistan.)

  • Bushra Naqvi

    (Lahore University of Management Sciences, Pakistan.)

  • Nawazish Mirza

    (Lahore School of Economics, Pakistan.)

Abstract

One of the most pressing issues concerning policymakers today is the choice of an exchange rate regime. Despite the intricacies of this problem, monetary authorities could narrow down their list of options if they were to focus on the following principles: full implementation to ensure credibility and synchronization with domestic realities and economic infrastructure. This paper proposes an optimal exchange rate regime for Pakistan based on a historical study of the outcomes and performance of different monetary stances adopted over the last 40 years.

Suggested Citation

  • Syed Kumail Abbas Rizvi & Bushra Naqvi & Nawazish Mirza, 2014. "From Fear of Floating to Benign Neglect: The Exchange Rate Regime Roller Coaster in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 19(Special E), pages 17-34, September.
    • Handle: RePEc:lje:journl:v:19:y:2014:i:sp:p:17-34
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    File URL: http://www.lahoreschoolofeconomics.edu.pk/EconomicsJournal/Journals/Volume%2019/Issue%20SP/02%20Kumail%20Rizvi%20Final.pdf
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    References listed on IDEAS

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    Cited by:

    1. Muhammad Arshad Khan & Saima Nawaz, 2018. "Does Pak-Rupee Exchange Rate Respond to Monetary Fundamentals? A Structural Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 57(2), pages 175-202.

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    More about this item

    Keywords

    Exchange rate; flexibility; regime; fear of floating; floating; pegging; Pakistan.;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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