Exchange Rate Volatility and Money Demand: An Empirical Analysis of Pakistan
Khalil Ahmad and
Muhammad Chani ()
Additional contact information
Muhammad Qasim: Ph.D. scholar at National College of Business Administration and Economics (NCBA&E), Lahore, Pakistan
Authors registered in the RePEc Author Service: Muhammad Qasim Attari ()
Journal of Policy Research (JPR), 2015, vol. 1, issue 3, 131-141
The main objective of this study is to investigate the impact of foreign exchange rate volatility on money demand in Pakistan. For this purpose disaggregate expenditure approach use to construct money demand function. For empirical estimation Autoregressive Distributed Lag (ARDL) approach is employed to investigate the co-integration among the money demand, exchange rate volatility, investment expenditure, consumption expenditure, government expenditure and inflation. The long run results show that householdâ€™s consumption expenditures, investment expenditure and inflation has positive and significant relationship with money demand in case of Pakistan. On the other hand, the long run results relating to government expenditures and exchange rate volatility show negative and significant impact on money demand.
Keywords: Exchange Rate volatility; Inflation; Money Demand (search for similar items in EconPapers)
JEL-codes: E30 E31 E41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://rfh.org.pk/jur/paper/exchange-rate-volatili ... agazine_category=jpr (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:rfh:jprjor:v:1:y:2015:i:3:p:131-141
Access Statistics for this article
Journal of Policy Research (JPR) is currently edited by Dr. Muhammad Irfan Chani (PhD Applied Economics)
More articles in Journal of Policy Research (JPR) from Research Foundation for Humanity (RFH) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Muhammad Irfan Chani (PhD Applied Economics) ( this e-mail address is bad, please contact ).