Nominal Interest Rate, Inflation and Money Market Link in Bangladesh: An Econometric Analysis

Asian Journal of Humanity, Art and Literature

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Field Value
 
Title Nominal Interest Rate, Inflation and Money Market Link in Bangladesh: An Econometric Analysis
 
Creator Chowdhury, Sanjida Akter
Yousuf, Md.
Uddin, Md. Nezum
Uddin, Mohammed Jashim
 
Subject Inflation rate
Nominal interest rate
Unit root test
Johansen co-integration test
ARDL model
Bound test
Granger causality test
 
Description This paper pursues to establish a connection among the nominal interest rate, the money market, and the inflation rate in Bangladesh using monthly time series data from June 2005 to March 2019. Because some data are stationary at the level and others are stationary at the 1st difference, the ARDL model is applicable for checking the link. There is a strong positive short-term and long-term relationship between inflation and nominal interest rates, suggesting that Bangladeshi data support the Fisher hypothesis for that time. For this study, the T bill, the call money rate is used as a measure of the money market. The research indicates that regulators should concentrate on call money rates in short-term and T-bill and call money rates in the long-term to control Bangladesh's nominal interest rate.
 
Publisher i-Proclaim
 
Date 2020-05-11
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier https://i-proclaim.my/journals/index.php/ajhal/article/view/501
10.18034/ajhal.v7i1.501
 
Source Asian Journal of Humanity, Art and Literature; Vol. 7 No. 1 (2020): January - June Issue; 59-68
2312-2021
2311-8636
10.18034/ajhal.v7i1
 
Language eng
 
Relation https://i-proclaim.my/journals/index.php/ajhal/article/view/501/445
 
Rights Copyright (c) 2020 Sanjida Akter Chowdhury, Md. Yousuf, Md. Nezum Uddin, Mohammed Jashim Uddin
https://creativecommons.org/licenses/by-nc/4.0
 

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