International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

A Real Exchange Rate based Phillips Curve Model for Pakistan
Naeem Ur Rehman Khattak, Muhammad Tariq

In this paper an open-economy version of a Phillips curve for Pakistan is estimated over the period 1973-2008. The question whether real exchange rate affect the inflation in Pakistan is addressed in this framework. The main finding is that real exchange depreciations are inflationary in Pakistan. Moreover, it is also find out that exchange rate regime changes also explain this inflation.

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