The Money Supply Process in Bangladesh : An Error-Correction Approach

  title={The Money Supply Process in Bangladesh : An Error-Correction Approach},
  author={Mohammad Kabir Hassan and M. Mustafa and Syed Abul Basher},
In this paper we examine both long-term and short-term dynamic relationships among money supply and its components for Bangladesh economy within an Engle-Granger error-correction framework. Using 24 years of annual data on money and its components, our results suggest that M1 and M2 money supply have very predictable long-run relationships with its components. Moreover, M1 money supply has short-run relationship with its components but no short-term relationships exist among M2 and its… CONTINUE READING

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