Globalization and Economic Stability: An Insight from the Rocket and Feather Hypothesis in Pakistan

The purpose of this study was to analyze the irregular pattern changing inflation as a result pass-through exchange rate and fluctuations in oil prices current globalization scenario. We used annual data sets for crude prices, real effective rates, Pakistan from 1972 2021 analysis. control variables were imports (IMP), gross domestic product per capita (GDP), exports (EXP), (GLOB), interest rates (CRATE). Our findings non-linear autoregressive distributed lag (NARDL) analysis showed that had an asymmetric rocket feather regardless how defined or measured. On other hand, GDP, EXP, GLOB negatively impacted inflation, CRATE IMP positive effects on inflation. suggested alternative policies, such fixing rate, might decrease uncertainty stabilize Pakistani economy future. Moreover, increasing use sustainable energy would reduce dependence which lower its impact economy.