Broad money supply in Bangladesh drives economic growth in the long run.
The study looked at how the amount of money in circulation (M2) in Bangladesh affects the country's economic growth (GDP). They found that M2 and GDP are closely linked in the long term, with M2 influencing GDP over time. The researchers used a Vector Error Correction Model to show that M2 has a lasting impact on GDP. Their analysis also revealed that there is no pattern of errors in the data and that the results are reliable.