期刊名称：Journal of Business and Social Review in Emerging Economies
印刷版ISSN：2519-089X
电子版ISSN：2519-0326
出版年度：2020
卷号：6
期号：4
页码：1391-1399
DOI：10.26710/jbsee.v6i4.1449
语种：English
出版社：CSRC Publishing
摘要：This paper investigates the impact of exchange rate changes across money demand balances in Pakistan by applying the linear and non-linear ARDL approaches. The study not only examines the impact of exchange rate changes across demand for money but also attempts to analyze whether demand for money is stable or not? For an estimation of money demand function, yearly time-series data have been used from the year 1972 to 2019. Findings of the linear ARDL model disclose that exchange rate and demand for money balances are positively and significantly associated with each other. Moreover, results of the non-linear ARDL model reveal that positive and negative exchange rate shocks have mixed effects on money demand. The results of the asymmetric test also demonstrate that exchange rate changes have symmetric effects on money demand while stability test results propose that money demand remains stable in Pakistan.
