Open AccessA Monetary Model of Inflation for Bangladesh, 1974-1985
Author(s) -
Md. Akhtar Hossain
Publication year - 1989
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v28i2pp.133-155
Subject(s) - economics , disequilibrium , inflation (cosmology) , monetary economics , price level , stock (firearms) , stock market , monetary policy , macroeconomics , econometrics , medicine , mechanical engineering , paleontology , physics , horse , biology , theoretical physics , ophthalmology , engineering
A model of inflation for Bangladesh is developed and estimatedfor the period 1974:2-1985 :4, in line with the monetary approach andbased on the hypothesis that any disequilibrium in the real money-marketadjusts itself through changes in the price level, but notinstantaneously. Changes in the prices oftraded gooas in theinternational market, real permanent income, real money stock, oneperiod lagged rate of inflation, and changes in the terms of tradebetween traded and non-traded goods are found to be the majordeterminants of inflation in Bangladesh.