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Inflation and Economic Growth in Bangladesh: 1981-2005

By Shamim Ahmed and M. Golam Mortaza

Abstract

This paper empirically explores the present relationship between inflation and economic growth in the context of Bangladesh. Using annual data set on real GDP and CPI for the period of 1980 to 2005, an assessment of empirical evidence has been acquired through the co-integration and error correction models. Further, it explores an interesting policy issue of what is the threshold level of inflation for the economy. [BB WP no. 0604].inflation, economic growth, Bangladesh, GDP, CPI, integration, correction models, inflation, economy, economic growth, Granger Causality, Structural Break, Threshold level, sustainability,

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