Title: Determinants of Inflation in Bangladesh: An Econometric Approach
Abstract: This study investigates the determinants of inflation from the perspective of an Asian emerging economy, Bangladesh, between 1977 and 2014. We explore both demand-side and supply-side factors causing inflation in Bangladesh, using econometric techniques for measuring the long-term and short-term relationship between variables under the concept of the Co-integration and Error Correction Model. Investigating causal relationships using the Granger causality test, the results reveal the existence of a stable long-run significant relationship of inflation with real GDP, money supply, imports, interest rate, remittances, and exchange rate. The findings herein suggest that the causes of inflation in Bangladesh are multi-dimensional and dynamic, and therefore the government should adopt proper strategies to curb inflation in the country.
Publication Year: 2018
Publication Date: 2018-01-01
Language: en
Type: article
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Cited By Count: 3
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