This paper investigates the two-way relationship between fIScal deficits and inflation in Bangladesh's economy. A dynamic model containing inflation and equations concerning government revenue and development expenditures has been constructed and estimated, using quarterly data over the...

This paper develops and estimates a monetary model of inflation in Pakistan over the 1963 -82 period. Both domestic and external factors are identified as the major determinants of inflation. Dynamic simulation results suggest that the model is able to track the fluctuations of endogenous...

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...

After remaining low throughout the 1970s and 1980s, Bangladesh's trade deficits (as percent of GDP) with India have been rising sharply since 1993. The size of its illegal trade deficits with India is also large and perceived to be rising since the early 1990s. Thus, instead of interdependence...

This paper tests the monetarist versus the neo-Keynesian views on the acceleration of inflation, using annual data for Bangladesh, India, Nepal, Pakistan, and Sri Lanka (mostly) for the period 1961—88, within the framework of the theoretical model of Stein (1978, 1982). The empirical results...