Abstract
This paper examines empirically the potential role of nominal and real variables in determining nominal exchange rates in Pakistan. For this purpose various equations determining the value of nominal exchange rate of Pak-rupee vis-?-vis its major trading partners are estimated using Generalized Methods of Moments (GMM) estimations. The results show that nominal exchange rates depend upon a number of endogenous and policy variables both in domestic and foreign economy. In particular, policy-induced shocks are shown to be principal cause of instability in nominal exchange rates.
Article Details
- Year: 2007
- Volume: 28
- Issue: 1
- Accepted: 01.12.2006
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How to Cite?
Muhammad Zakaria, Eatzaz Ahmad, M. Mazhar Iqbal (2007). Nominal Exchange Rate Variability: A Case Study of Pakistan. Journal of Economic Cooperation and Development, 28(1), -.
