Publication Date

2016

Document Type

Dissertation/Thesis

First Advisor

Mohabbat, Khan A.

Degree Name

Ph.D. (Doctor of Philosophy)

Department

Department of Economics

LCSH

Economic forecasting--Bangladesh--Econometric models||Monetary policy--Bangladesh--Econometric models

Abstract

This study examined the impact of monetary policy shocks on real and nominal variables in Bangladesh using monthly data for the floating exchange rate period from June 2003 to June 2015. Structural vector autoregressive (SVAR) models and impulse response functions were used to identify the impact of domestic monetary policy shocks on output, interest rate, inflation and nominal exchange rate. Results from the baseline model suggest that a contractionary monetary policy shock leads to a rise in domestic interest rate and an appreciation of domestic currency. In response to the shock both output and inflation fell but the shock had a delayed effect on output and inflation. Unlike previous studies on Bangladesh the identification scheme of this paper was able to solve the liquidity puzzle, the price puzzle and the exchange rate puzzle.

Comments

Advisors: Khan A. Mohabbat; Carl Campbell Iii.||Committee members: Jeremy Groves; Maria Ponomareva.||Includes bibliographical references.||Includes illustrations.

Extent

66 pages

Language

eng

Publisher

Northern Illinois University

Rights Statement

In Copyright

Rights Statement 2

NIU theses are protected by copyright. They may be viewed from Huskie Commons for any purpose, but reproduction or distribution in any format is prohibited without the written permission of the authors.

Media Type

Text

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