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There are some academic papers dealing with this question (but beyond the specific case of Pakistan) Note first that inflation is inversely correlated with real exchange rates (as long as nominal exchange rates do not adjust instantaneously to prices). The following numerical example from Gylafson (1999) illustrates the point. Suppose the real exchange ...


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It is a central bank issue.The dollar is a currency widely used around the world. It is so widely held that if the U.S would try and "Devalue its currency" to gain an economic advantage it would be nil effect because it would also bring down its own economy. China is much different in that it is a closed enough society that it can tell you what you have to ...


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