Comparative Investigation of Inflation in Pakistan and Turkey: Fresh Insights from the Wavelet Coherence Approach
DOI:
https://doi.org/10.5281/zenodo.8332801Resumo
Pakistan and Turkey share the same macroeconomic fundamentals as energy dependence, double digits inflation, and tremendous currency depreciation. This paper aims at analyzing the impact that exchange rate, interest rate, and oil price have on the inflation rate in Turkey and Pakistan by using the data period of 2010:M1-2021:M12 and employing the wavelet coherence model. The results show that currency deprecation boosts inflation in both economies. Interest contribution to inflation is more significant in the case of Pakistan compared to Turkey while oil prices only increase inflation in Pakistan compared to turkey. To reduce the impact of currency depreciation on inflation in both nations, an increase in export policy can be implemented, similarly, foreign direct investment can be attracted. Additionally, both nations need to increase the inflow of funds and need to reduce the outflow of funds which will also help them stabilize the currency.
Downloads
Publicado
Como Citar
Edição
Secção
Licença
Direitos de Autor (c) 2023 International Journal of Contemporary Economics and Administrative Sciences
Este trabalho encontra-se publicado com a Licença Internacional Creative Commons Atribuição 4.0.
The Author(s) must make formal transfer of copyright for each article prior to publication in the International Journal of Contemporary Economics and Administrative Sciences. Such transfer enables the Journal to defend itself against plagiarism and other forms of copyright infringement. Your cooperation is appreciated. You agree that copyright of your article to be published in the International Journal of Contemporary Economics and Administrative Sciences is hereby transferred, throughout the World and for the full term and all extensions and renewals thereof, to International Journal of Contemporary Economics and Administrative Sciences.
The Author(s) reserve(s): (a) the trademark rights and patent rights, if any, and (b) the right to use all or part of the information contained in this article in future, non-commercial works of the Author's own, or, if the article is a "work-for-hire" and made within the scope of the Author's employment, the employer may use all or part of the information contained in this article for intra-company use, provided the usual acknowledgements are given regarding copyright notice and reference to the original publication.
The Author(s) warrant(s) that the article is Author's original work, and has not been published before. If excerpts from copyrighted works are included, the Author will obtain written permission from the copyright owners and shall credit the sources in the article. The author also warrants that the article contains no libelous or unlawful statements, and does not infringe on the rights of others. If the article was prepared jointly with other Author(s), the Author agrees to inform the co-Author(s) of the terms of the copyright transfer and to sign on their behalf; or in the case of a "work-for-hire" the employer or an authorized representative of the employer.
The journal is registered with the ISSN : 1925-4423.
IJCEAS is licensed under a Creative Commons Attribution 4.0 International License.
This license lets others distribute, remix, tweak, and build upon your work, even commercially, as long as they credit you for the original creation. This is the most accommodating of licenses offered. Recommended for maximum dissemination and use of licensed materials.
