Economics, Econometrics and Finance
5 years ago

Money Supply Drives Economic Growth in Bangladesh: Study Reveals Impact

Developing Country Studies
The Long-Run Dynamic Relationship between Broad Money Supply and the GDP of Bangladesh: A VECM Approach
Md. Arfanuzzaman

Paper Summary

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The study found that there is a strong connection between the amount of money circulating in Bangladesh (M2) and the country's overall economic output (GDP). The researchers used a special model to show that changes in money supply have a lasting impact on GDP. This means that the amount of money in the economy can influence how well the country's economy is doing in the long run. The results also showed that there is no pattern of errors in the data, and the leftover data points are spread out evenly.