IDEAS home Printed from https://ideas.repec.org/a/ris/badest/0405.html
   My bibliography  Save this article

Money Demand Function for Bangladesh

Author

Listed:
  • Islam, Anisul M.

    (Professor of Economics in the college of Business, University of Houston-Downtown, Houston, Texas, USA.)

Abstract

This paper provides new evidence on the money demand function for Bangladesh using cointegration techniques and a longer quarterly time series data than previously used. Cointegration results indicate that a single co-integrating vector describes the long-run equilibrium money demand relationship in Bangladesh for both the narrow and broad money categories. It is also found that the money demand function is stable and is highly dominated by the transaction motive for holding money. The effects of alternative opportunity cost variables on money demand were not found to be significant. The short-run money demand function was found to be stable and the speed of adjustment to the long-run equilibrium was found to be reasonable for both money categories. The empirical results may have significant implications for monetary policy of the country.

Suggested Citation

  • Islam, Anisul M., 2000. "Money Demand Function for Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 26(4), pages 89-114, December.
    • Handle: RePEc:ris:badest:0405
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. S. M. Woahid Murad, 2021. "Asymmetric Effects of Economic Uncertainty on Money Demand Function in Bangladesh: A Nonlinear ARDL and Cumulative Fourier Causality Approach," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 20(2), pages 1-13, September.
    2. S. M. Woahid Murad, 2021. "Asymmetric Effects of Economic Uncertainty on Money Demand Function in Bangladesh: A Nonlinear ARDL and Cumulative Fourier Causality Approach," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 20(2), pages 187-199, September.
    3. Hossain, Akhand Akhtar, 2010. "Monetary targeting for price stability in Bangladesh: How stable is its money demand function and the linkage between money supply growth and inflation?," Journal of Asian Economics, Elsevier, vol. 21(6), pages 564-578, December.
    4. S. M. Woahid Murad, 2021. "Asymmetric Effects of Economic Uncertainty on Money Demand Function in Bangladesh: A Nonlinear ARDL and Cumulative Fourier Causality Approach," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 20(3), pages 201-213, December.

    More about this item

    Keywords

    Money demand; Opportunity costs; Nominal interest rates; Critical values; Development studies; Anticipated inflation; Inflation rates; Coefficients; Time series; Proxy reporting;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:badest:0405. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Meftaur Rahman, Cheif Publication Officer, BIDS (email available below). General contact details of provider: https://edirc.repec.org/data/bidssbd.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.