A small macroeconomics model is used to estimate empirically the real tax revenue implications of devaluation. Overall effect of devaluation on tax revenue id found to be negative, which contrasts with the theoretical presumption that devaluation improves the government revenue position....

The hypothesis of contractionary effects the devaluation have been tested within the help of a small macroeconometric model of the economy of Bangladesh. Although highly contractionary supply-side effects are observed, devaluation has been found to expand output modestly through the demand side....