Testing Taylor's rule to examine monetary policy regarding bank rate, inflation and output gap of Bangladesh

dc.contributor.author	Zayed, N.M.
dc.date.accessioned	2019-05-16T08:25:30Z
dc.date.available	2019-05-16T08:25:30Z
dc.date.issued	2018
dc.identifier.isbn	1528-2635-22-1-111
dc.identifier.uri	http://hdl.handle.net/123456789/73
dc.description.abstract	This paper examined monetary policy of Bangladesh regarding bank rate, inflation rate and output gap during 1972-2016 in accordance with Taylor's rule. ADF test, PP test, KPSS test, OLS method, GMM method, CUSUM test and CUSUMQ test have been applied to test the relationship among the variables and to test the stability of the OLS model. It was found that there existed a relationship among the variables and Taylor's rule was not applicable during the analyzed period. Bangladesh bank needs to implement a moderate monetary policy with the aid of bank rate as the major policy tool, so that output gap and inflation rate both are decreased by maintaining the money supply in Bangladesh economy.	en_US
dc.language.iso	en_US	en_US
dc.publisher	Academy of Accounting and Financial Studies Journal	en_US
dc.subject	Taylor’s Rule	en_US
dc.subject	GMM Method	en_US
dc.subject	Monetary Policy	en_US
dc.subject	Stability	en_US
dc.subject	Bank Rate	en_US
dc.subject	Output Gap	en_US
dc.subject	Bangladesh Bank	en_US
dc.title	Testing Taylor's rule to examine monetary policy regarding bank rate, inflation and output gap of Bangladesh	en_US
dc.type	Article	en_US