This paper tests the monetarist versus the neo-Keynesian views on the acceleration of inflation, using annual data for Bangladesh, India, Nepal, Pakistan, and Sri Lanka (mostly) for the period 1961—88, within the framework of the theoretical model of Stein (1978, 1982). The empirical results...

By applying the methods of cointegration and error-correction, this paper investigates the money demand behaviour in Bangladesh with annual data for the period 1973 to 2003. The empirical results suggest that real money balances (narrow or broad), real permanent income and the deposit rate of...

This paper examines the time series properties of variables in the money demand function in Pakistan for 1951-91. The Dickey-Fuller test results suggest that real money balances (narrow or broad), real output, the yield on government bonds, and the market call rate of interest have a unit root,...

This paper estimates a quarterly short run money demand model for Bangladesh for the 1976q4-89q1 period and tests for its stability. Real income, interest rate and the expected rate of inflation are found to be the major determinants of money demand in Bangladesh. Both the Chow and CUSUM and...

This paper develops a macroeconomic model with tradable and nontradable goods and then analyses the movement of both the real exchange rate and trade balance in Bangladesh for the period 1973-1996. Statistical data show that a sustained economic growth of about 4.5 per cent per annum since the...

In this paper, a partial adjustment model of money demand for Bangladesh is specified and is estimated with the annual data for the period 1973-2003. Then, the recursive and rolling regression techniques are applied and the possibility of changes in the income and interest elasticities of demand...

After remaining low throughout the 1970s and 1980s, Bangladesh's trade deficits (as percent of GDP) with India have been rising sharply since 1993. The size of its illegal trade deficits with India is also large and perceived to be rising since the early 1990s. Thus, instead of interdependence...