Academic Journal
Interest rates and the demand for money in Bangladesh: an empirical investigation with quarterly data, 1997Q4-2006Q4
| العنوان: | Interest rates and the demand for money in Bangladesh: an empirical investigation with quarterly data, 1997Q4-2006Q4 |
|---|---|
| المؤلفون: | Hossain, Akhtar, Younus, Sayera |
| المساهمون: | The University of Newcastle. Faculty of Business & Law, Newcastle Business School |
| بيانات النشر: | ICFAI University Press |
| سنة النشر: | 2009 |
| المجموعة: | NOVA: The University of Newcastle Research Online (Australia) |
| مصطلحات موضوعية: | money demands, interest rates, Bangladesh |
| الوصف: | This paper investigates the sensitivity of money demands to interest rates on treasury bills in Bangladesh, with quarterly data for the period 1997Q4-2006Q4. A standard demand for money function is specified, with real output and a representative interest rate on treasury bills, as key determinants. The Augmented Dickey-Fuller (ADF) and the Kwiatkowski, Phillips, Schmidt and Shin (KPSS) tests results suggest that real money balances (narrow or broad) and real output appear to have a unit root while, the interest rates on treasury bills are stationary. The long-run demand for money relationship is estimated sequentially, with a representative interest rate on treasury bills of a particular maturity, by both the Ordinary Least Squares (OLS) and the Dynamic Ordinary Least Squares (DOLS). Empirical results suggest that there exists a well-behaved and stable demand for money function and that the demand for money (narrow or broad) is sensitive to the interest rate, for example, on 182-day treasury bills. Finally, following Heller and Khan (1979), this paper incorporates the term-structure of interest rates in the money demand function. |
| نوع الوثيقة: | article in journal/newspaper |
| اللغة: | English |
| تدمد: | 0972-9291 |
| Relation: | The ICFAI University Journal of Monetary Economics Vol. 7, Issue 1, p. 78-98; http://hdl.handle.net/1959.13/807010; uon:7276 |
| الاتاحة: | http://hdl.handle.net/1959.13/807010 |
| رقم الانضمام: | edsbas.22CE258A |
| قاعدة البيانات: | BASE |
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