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• W2396193710 abstract "Interest in detection of factors considered responsible for uneven fluctuations in steady state growth of world economies is long standing. There has been an explosion of theoretical literature and empirical evidences which think about compassionate to resolve the issue. Hike in prices of goods and services and foreign exchange are two important aspects which are blamed for such bumpy vacillation in economic growth of the world economies like all other political, social and economic factors. It is true that both factors have special significance for economic growth, but inquiry about internal relationships of the above mentioned both variables still has research thirst. The novelty of this research paper is that it provides the empirical evidence regarding the relationships between foreign exchange reserves and inflation, focusing on Pakistan’s experience since 1960. We used the Auto Regressive Distributive Lag Model (ARDL) proposed by Pesaran et al. (2001) in order to investigate the order of co-integration between inflation and foreign exchange reserves through bound testing approach, and also use the OLS estimation to determine the long run relationship. Through this econometric technique, we traced out the nature of relationship and speed of adjustment in the concerned variable due to fluctuations in the level of foreign exchange reserves. Empirical results indicate that the rise in foreign exchange reserves leads to lower the rate of inflation in Pakistan during the study period." @default.
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• W2396193710 date "2011-01-01" @default.
• W2396193710 modified "2023-09-27" @default.
• W2396193710 title "Foreign Exchange Reserves and Inflation in Pakistan: Evidence from ARDL Modelling Approach" @default.
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