IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Exchange Rate and Consumer Prices in Pakistan: Is Rupee Devaluation In Inflationary?

Listed author(s):
  • Ehsan U. Choudhri

    (Carleton University, Canada.)

  • Mohsin S. Khan

    (International Monetary Fund, Washington, D.c.)

This paper challenges the popular view that devaluation of the rupee is inflationary. Recent developments in the theoretical literature are reviewed to explain why consumer prices would be unresponsive to exchange rate changes in the short run. Then empirical tests are conducted for Pakistan during the period 1982 to 2001 to examine whether inflation is systematically related to changes in the exchange rate. The empirical analysis finds no association between rupee devaluations and inflation in Pakistan. It appears, therefore, that concerns about the inflationary consequences of rupee devaluation are unsupported by the facts

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 41 (2002)
Issue (Month): 2 ()
Pages: 107-120

in new window

Handle: RePEc:pid:journl:v:41:y:2002:i:2:p:107-120
Contact details of provider: Postal:
P.O.Box 1091, Islamabad-44000

Phone: (92)(51)9248051
Fax: (92)(51)9248065
Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Naushin Mahmood & Durr-E-Nayab, 1998. "Gender Dimensions of Demographic Change in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 705-725.
  2. SABlHA HASSAN SYED, 1978. "Female Status and Fertility in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 17(4), pages 408-430.
  3. Ghulam Yasin Soomro, 2000. "A Re-examination of Fertility Transition in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(3), pages 247-261.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:41:y:2002:i:2:p:107-120. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.