The core idea of the paper is to empirically assess the effect of Euro-Dollar Exchange rate on chosen macroeconomic variables, like, real output, price level, and money supply of Pakistan. We applied VAR based approaches to find the relation among the said variables due to high reliance on...

The core idea of the paper is to empirically assess the effect of Euro-Dollar Exchange rate on chosen macroeconomic variables, like, real output, price level, and money supply of Pakistan. We applied VAR based approaches to find the relation among the said variables due to high reliance on...

The study examines the volatility of exchange rate effects on interest rates and inflation. For this purpose the study used monthly data over the period January 1990 to December 2010. To explore the volatility of exchange rate study used the ARCH (Auto Regressive Conditional Heterosidasticity)...