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Application of the monetary policy function to output fluctuations in Bangladesh

Author

Listed:
  • Yu Hsing

    () (Southeastern Louisiana University)

  • A. M. M. Jamal

    () (Southeastern Louisiana University)

  • Wen-jen Hsieh

    () (National Cheng Kung University)

Abstract

Applying the monetary policy function, this paper finds that real GDP in Bangladesh is positively associated with real deprecation, real financial stock price, and world output and negatively influenced by the world real interest rate. The coefficient of the ratio of government consumption spending to nominal GDP is insignificant, suggesting that expansionary fiscal policy may not be effective.

Suggested Citation

  • Yu Hsing & A. M. M. Jamal & Wen-jen Hsieh, 2009. "Application of the monetary policy function to output fluctuations in Bangladesh," Economics Bulletin, AccessEcon, vol. 29(3), pages 2113-2122.
  • Handle: RePEc:ebl:ecbull:eb-09-00364
    as

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    References listed on IDEAS

    as
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    8. John B. Taylor, 1999. "A Historical Analysis of Monetary Policy Rules," NBER Chapters,in: Monetary Policy Rules, pages 319-348 National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    monetary policy function; fiscal policy; real depreciation; stock price; world interest rate;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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