Mohabbat, Khan A.
Ph.D. (Doctor of Philosophy)
Department of Economics
Economic forecasting--Bangladesh--Econometric models; Monetary policy--Bangladesh--Econometric models
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.
Chowdhury, Mainul Islam, "Monetary policy transmission mechanism in Bangladesh : an SVAR approach" (2016). Graduate Research Theses & Dissertations. 4022.
Northern Illinois University
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