US EditionExchange Rate Pass-Through to Consumer Prices in Pakistan: New Evidence From a VAR Analysis (2013-2023)
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Exchange Rate Pass-Through to Consumer Prices in Pakistan: New Evidence From a VAR Analysis (2013-2023)
Download Exchange Rate Pass-Through (ERPT) refers to the degree to which changes in the exchange rate (ER) affect domestic prices of an economy. Since Pakistan’s economy has a considerable level of openness to international trade, the domestic price level is sensitive to external price shocks. A change in the ER can lead to either the appreciation or depreciation of the Pakistani Rupee (PKR). This shift, in turn, affects the prices of imported g…
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