Folly of chasing exchange rate

PAKISTAN’S economic debate is trapped in outdated vocabulary. Each time the rupee weakens, headlines scream ‘devaluation’. Anchors ask whether one is imminent, while policymakers debate whether the exchange rate should be defended or strengthened. as if it was simply another policy tool. It’s not. The language belongs to another era. Today, most countries let their currencies move more freely. When an economy gets dangerously out of balance, the currency has to adjust to avoid a more disrupti...

By [email protected] (Nadeem ul HaqueShahid Kardar)