IDEAS home Printed from https://ideas.repec.org/a/asi/aeafrj/v9y2019i6p702-711id1831.html
   My bibliography  Save this article

Money and Inflation Nexus in Bangladesh

Author

Listed:
  • Md. Nezum Uddin
  • Mohammed Jashim Uddin
  • Monir Ahmmed

Abstract

This paper studies the causality link between inflation and money supply in Bangladesh. Monthly data running from May 2010 to August 2018 are utilized. M1 and M2 money are the instruments of money supply with CPI the measure of inflation. Unit root test results indicate all variables are stationary at level one. Cointegration tests found a long-run relation between M2 money supply and CPI. As the coefficient value of RESM2 (-1) is -0.40 for the short-run dynamic model, there is a strong indication that any deviation of the consumer price index (CPI) adjusts to its long-run equilibrium concerning M2 money at the rate of 40 per cent per month. However, the error correction model for M2 is found to be superior to M1.

Suggested Citation

  • Md. Nezum Uddin & Mohammed Jashim Uddin & Monir Ahmmed, 2019. "Money and Inflation Nexus in Bangladesh," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(6), pages 702-711.
    • Handle: RePEc:asi:aeafrj:v:9:y:2019:i:6:p:702-711:id:1831
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5002/article/view/1831/2809
    Download Restriction: no
    File URL: https://archive.aessweb.com/index.php/5002/article/view/1831/4109
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:aeafrj:v:9:y:2019:i:6:p:702-711:id:1831. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5002/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.