Open AccessMacroeconomic Determinants of Inflation in Bangladesh
Author(s) -
Ummya Salma
Publication year - 2021
Publication title -
european journal of business and management research
Language(s) - English
Resource type - Journals
ISSN - 2507-1076
DOI - 10.24018/ejbmr.2021.6.5.1116
Subject(s) - economics , inflation (cosmology) , broad money , monetary economics , exchange rate , money supply , ordinary least squares , balance (ability) , monetary policy , macroeconomics , econometrics , medicine , physics , theoretical physics , physical medicine and rehabilitation
The paper intends to investigate the key determinants of inflation in Bangladesh using the data for the period 2009-10 to 2019-20. The variables used in the study are broad money supply, foreign direct investments, GDP growth, foreign exchange rates and trade balance. Ordinary least squared method has been used to conduct the empirical analysis. The results found that broad money supply, foreign direct investments and trade balance has positive and significant association with the inflation. GDP growth has negative and insignificant relation with the inflation whereas foreign exchange has positive but insignificant association with the inflation. The unexpected event of Covid-19 has also found to have some contribution in affecting the inflation rate.