IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.47year2013issue1pp339-353.html
   My bibliography  Save this article

Monetary policy and exchange market pressure in Pakistan

Author

Listed:
  • Shabbir Ahmed

    (University of Nizwa, Oman)

Abstract

This study analyses the foreign exchange market disequilibrium in Pakistan. A monetary model of exchange market pressure has been developed and estimated using a VAR model. Employing Granger causality and impulse response analysis, it is shown that monetary authorities in Pakistan have only limited control over the domestic money supply and any effort to increase domestic credit will not be successful as it leads to the drainage of foreign reserves and attempts to sterilise the monetary effects of the loss of reserves will be largely ineffective.

Suggested Citation

  • Shabbir Ahmed, 2013. "Monetary policy and exchange market pressure in Pakistan," Journal of Developing Areas, Tennessee State University, College of Business, vol. 47(1), pages 339-353, January-J.
    • Handle: RePEc:jda:journl:vol.47:year:2013:issue1:pp:339-353
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v047/47.1.ahmed.html
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Siklar Ilyas & Akca Aysegul, 2020. "Exchange Market Pressure and Monetary Policy: The Turkish Case," Ekonomika (Economics), Sciendo, vol. 99(1), pages 110-130, June.
    2. Ratnasari, Anggraeni & Widodo, Tri, 2017. "Exchange Market Pressure and Monetary Policies in ASEAN5," MPRA Paper 81543, University Library of Munich, Germany.

    More about this item

    Keywords

    Exchange Market Pressure; Pakistan; Monetary Policy; Vector Autoregressive; Granger Causality; Impulse Response Function;
    All these keywords.

    JEL classification:

    • 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
    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jda:journl:vol.47:year:2013:issue1:pp:339-353. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Abu N.M. Wahid (email available below). General contact details of provider: https://edirc.repec.org/data/cbtnsus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.