Impact of Financial Crisis on an Economy: Pakistan as a Case
[1]
Amna Nazeer, Schools of Statistics and Mathematics, HuaZhong University of Science and Technology, Wuhan, China.
[2]
Khuram Shafi, School of Management, HuaZhong University of Science and Technology, Wuhan, China.
[3]
Zahra Idrees, School of Management, HuaZhong University of Science and Technology, Wuhan, China.
[4]
Liu Hua, School of Management, HuaZhong University of Science and Technology, Wuhan, China.
Financial crisis has collapsed the large financial institutions, bailout the banks and downturns in stock market around the world. This paper focuses on the fact that how financial crisis can effect the Pakistan economy. This study takes the floating exchange rate as independent variables because the Asian crisis countries exchange rate prior to the 1997 crisis would suggest that their exchange rate looks very much like pegs to the US dollars for the extend period of time and another is interest rate volatility and the oil prices increases during the decade. The results in scenario to Pakistan showed that the floating or fluctuating exchange rate and interest rate had negative and oil prices had a positive relationship with financial crisis.
Floating Exchange Rate, Interest Rate Volatility, Oil Prices
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