Relationship between Inflation and Interest Rate: Evidence from Pakistan Ayub G. 1 , Rehman N.U. 2 , Iqbal M. 3 , Zaman Q. 3 and Atif M. 3 1 University of Swat, Khyber Pakhtonkhawa, PAKISTAN Abstract. This study focuses on the study of the causal relation of inflation rate with that of nominal interest rate in Pakistan. This is also known as Fisher hypothesis, which is used to study the equilibrium relation for long run between the inflation rate and the nominal interest rate in the time series data from 1973-2010. The Relationship Between Exchange Rate and Inflation in Pakistan by Shagufta Kashif Abstract. There has been a long-standing interest in studying the factors that are responsible for uneven vacillation in the stable growth of the world economies.

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