 The Demand for Money in Bangladesh During 1975-1997: A Cointegration AnalysisNasiruddin Ahmed
Indian Economic Review, 1999, vol. 34, issue 2, 171-185 Abstract: This paper investigates the existence of a long run money demand function for Bangladesh during the period 1975-1997 using the cointegration and error correction modelling approach. It also examines the parameter stability of the money demand function. The empirical results suggest that there exists a unique long-run relationship between real broad money balance, real GDP, and the real exchange rate. The short- term dynamic behaviour of money demand has been investigated by estimating an error correction model in which the error correction term has been found to be correctly signed and statistically significant. Real GDP and the real exchange rate have emerged as important determinants of the demand for money in Bangladesh. Our results provide no evidence of a structural break in the money demand function in the post-liberalisation period in Bangladesh. JEL-codes: C22 E41 E52 (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:v:34:y:1999:i:2:p:171-185 Ordering information: This journal article can be ordered from Access Statistics for this article Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.