Contents of the volume

2017, Volume 70 - Issue 1

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 01 February 2017

THE RELATIONSHIP BETWEEN SAVINGS AND ECONOMIC GROWTH AT THE DISAGGREGATED LEVEL

Lumengo Bonga-Bonga, Nomvuyo GUMA

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MONETARY POLICY TRANSMISSION OVER THE REAL SECTOR OF BANGLADESH ECONOMY: AN SVAR APPROACH

Abdur Rahman Forhad, Ghassem A. Homaifar, Abul Hasnat Muhammed Salimullah

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REMITTANCES AND FOREIGN AID AS SOURCES OF EXTERNAL DEVELOPMENT FINANCE: IMPACTS ON SAVINGS AND INVESTMENT IN POST-WAR LEBANON

Bassam Hamdar, Samer Nouayhid

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THE DYNAMIC CAUSAL LINKAGE BETWEEN FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM ETHIOPIA

Sheilla Nyasha, Yvonne Gwenhure, Nicholas M. Odhiambo

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TESTING FISCAL SUSTAINABILITY IN THE TRANSITION ECONOMIES OF EASTERN EUROPE: THE CASE OF POLAND (1999-2015)

Marco Tronzano

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Abdur Rahman FORHAD, Northern Illinois University, DeKalb, Illinois, USA

Co-authors

Ghassem A. HOMAIFAR, Middle Tennessee State University, Murfreesboro, Tennessee, USA

Abul Hasnat Muhammed SALIMULLAH, Middle Tennessee State University, Murfreesboro, Tennessee, USA

Monetary Policy Transmission over the Real Sector of Bangladesh Economy: An SVAR Approach

Pages

25-46

Abstract

This study examines the effectiveness of the monetary policy transmission of Bangladesh using Structural Vector Autoregressive model (SVAR) for the period of 1972-2014. The SVAR model investigates how a monetary policy shock defined as an unexpected rise in interest rate affects real and nominal macro variables; namely real output, prices, real effective exchange rates, and money supply. Our results suggest that a monetary policy shock does have a short run effect on real output, price level, and exchange rates. A monetary policy shock generates inflationary pressure leading to a devaluation of the Bangladeshi Taka. This paper suggests that the policy makers, to consider the trade-off between output and interest rate of Bangladesh.

JEL classification

E40, E50

Keywords

Bangladesh, Monetary Policy, SVAR

Index

  1. Introduction
  2. A brief literature review
  3. Methodology and data
  4. Results and analysis
  5. Conclusion

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