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A Monetary Model of Inflation for Bangladesh, 1974-1985

Md. Akhtar Hossain
The Pakistan Development Review
Vol. 28, No. 2 (Summer 1989), pp. 133-155
Stable URL: http://www.jstor.org/stable/41259223
Page Count: 23
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
A Monetary Model of Inflation for Bangladesh, 1974-1985
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Abstract

A model of inflation for Bangladesh is developed and estimated for the period 1974:2—1985:4, in line with the monetary approach and based on the hypothesis that any disequilibrium in the real money-market adjusts itself through changes in the price level, but not instantaneously. Changes in the prices of traded goods in the international market, real permanent income, real money stock, one period lagged rate of inflation, and changes in the terms of trade between traded and non-traded goods are found to be the major determinants of inflation in Bangladesh.

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