This paper investigates the sensitivity of money demands to interest rates on treasury bills in Bangladesh, with quarterly data for the period 1997Q4-2006Q4. A standard demand for money function is specified, with real output and a representative interest rate on treasury bills, as key...

This paper examines the relationship between real balances (narrow or broad) and industrial output in Bangladesh with seasonally-adjusted monthly data for the period 1973:01-2003:06. The results of the ADF and the KPSS tests suggest that although real narrow money balances have a unit root, real...