The relationship between exchange rate and inflation: the case of Western Balkans Countries

Fetai, Besnik; Koku, Paul Sergius; Caushi, Agron; Fetai, Ariana

doi:10.17261/pressacademia.2017.358

Cited by 16 publications

(15 citation statements)

References 9 publications

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“…Exchange rate in Pakistan has been rapidly depreciating rapidly that is causing inflation. This result is also consistent with economic theory as well as previous studies which concluded that the exchange rate has a significant effect on inflation, therefore any decision to change current monetary strategy i.e., applying fixed or flexible exchange rate must also take into consideration the associated costs and benefits (Fetai et al 2016).…”

Section: Model I Inflationsupporting

confidence: 91%

Factors Influencing Inflation and Economic Growth in Pakistan: An Econometric Analysis

Azra¹,

Afzal²,

Khan³

2020

SJA

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It is the need of the hour that in the wake of global dynamics, macro-economy of Pakistan is examined in detail. This may enable the policy makers to rethink and recast the growth and development objectives and strategy. Economic growth depends on a large number of social, economic, political, demographic, financial and global factors.Macroeconomics is based on General Equilibrium approach implying that the economy is influenced by the interplay of all conceivable factors. It is extremely Abstract | This paper made an econometric investigation of inflation and economic growth in Pakistan for the period 1990-2017. Money supply, imports, exchange rate and budget deficit were the major causes of inflation. Growth in GDP is expected to lead to a reduction in inflation. To combat inflation, unwarranted growth of money supply is checked and the exchange is stabilized. It is less likely that imports are reduced to lessen inflation due to economy needs. It appears difficult that GOP succeeds in curtailing the BD because of the widespread corruption and money-laundering. Human resource development coupled with investment and value-added by both agriculture and industry contributed significantly to economic growth. Should the policy makers attach genuine attention to these factors, it is expected that Pakistan economy will perform reasonably well. Specification and diagnostic tests revealed the appropriateness and soundness of the inflation and economic growth models. Parameters stability was examined for two periods (1991 and 2002). CPI showed stability in both periods but GDP did not demonstrate in the second period.

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Section: Model I Inflationsupporting

confidence: 91%

Factors Influencing Inflation and Economic Growth in Pakistan: An Econometric Analysis

Azra¹,

Afzal²,

Khan³

2020

SJA

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“…Similarly, Joof and Jallow (2020) argued that a 1% increase in the inflation rate in the Gambia result from a 0.39% devaluation of domestic currency value against the US dollar. The works by Fetai, Koku, Caushi, and Fetai (2016) have found that the exchange rate volatility is the supreme cause of generating inflationary pressure in Western Balkan countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Do Interest Rate and Inflation Matter for Exchange Rate Fluctuation in Bangladesh? An ARDL Approach

Chowdhury

2022

AJEER

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This research explores the effects of inflation and interest rate on the nominal exchange rate in Bangladesh using data from 1980 to 2021. The Augmented Dicky-Fuller (ADF) test is used to find the order of integration whereas the ARDL approach has been used to determine the causality and cointegration among the variables. The ARDL bounds testing approach revealed a stable and statistically significant long-run relationship between Interest Rate (IR), Inflation (INF) and Exchange Rate (ER). The long-run ARDL model advocates that an increase in the lending interest rate leads to a significant appreciation of Bangladeshi currency in terms of USD. At the same time, the inflation has a positive but insignificant impact on the exchange rate at 5% level of significance. In the short-run, the effects of the interest rate on the exchange rate are positive and significant but the inflationary effect on the exchange rate is not statistically significant. Hence, the study recommends an efficient management of interest rate and inflation in Bangladesh to keep balance in the exchange rate.

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“…Implikasi dari rezim ini adalah tingkat kerentanan terhadap guncangan ekonomi yang begitu tinggi karena kredibilitas bank sentral yang relatif rendah. Koku et al, (2016)menguji pengaruh volatilitas nilai tukar terhadap inflasi di negara-negara Balkan barat seperti Albania, Serbia, dan Macedonia. Pengujian tersebut membuktikan bahwa nilai tukar memiliki pengaruh negatif yang sangat signifikan terhadap stabilitas harga di negara-negara tersebut.…”

Section: Inflation Targeting Framework (Itf)unclassified

Efektivitas Rezim Inflation Targeting Framework (Itf) Terhadap Inflasi Di Indonesia

Briliant

2020

Ekobis

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Sebagai otoritas moneter, Bank Indonesia diberi amanat oleh pemerintah untuk menjaga stabilitas nilai rupiah melalui rezim Inflation Targeting Framework. Meskipun kebijakan Inflation Targeting Framework telah dijalankan sejak tahun 2005, nyatanya, target inflasi baru dicapai secara konsisten pada empat tahun terakhir, dari 2015 sampai dengan 2018. Penelitian ini bertujuan menguji efektivitas kerangka kebijakan moneter yang sedang dijalankan oleh Bank Indonesia. Variabel yang digunakan dalam penelitian ini adalah Nilai Tukar Rupiah/USD, Jumlah Uang Beredar dalam arti sempit (M1), Inflasi Periode Sebelumnya, Dummy Inflation Targeting Framework sebagai variabel independen, dan Inflasi sebagai variabel dependen. Data yang digunakan adalah data tahunan dari tahun 1991 sampai dengan2018. Sedangkan metode penelitian ini adalah regresi berganda menggunakan Huber-White dengan bantuan E-views 9.0. Hasil penelitian menujukkan bahwa Nilai Tukar Rupiah/USD, Jumlah Uang Beredar, Inflasi Periode Sebelumya berpengaruh positif dan signifikan terhadap Inflasi. Selain itu, hasil penelitian juga menunjukkan bahwa Dummy Inflation Targeting Framework berpengaruh signifikan terhadap Inflasi.

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The relationship between exchange rate and inflation: the case of Western Balkans Countries

Cited by 16 publications

References 9 publications

Factors Influencing Inflation and Economic Growth in Pakistan: An Econometric Analysis

Factors Influencing Inflation and Economic Growth in Pakistan: An Econometric Analysis

Do Interest Rate and Inflation Matter for Exchange Rate Fluctuation in Bangladesh? An ARDL Approach

Efektivitas Rezim Inflation Targeting Framework (Itf) Terhadap Inflasi Di Indonesia

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