{
  "title": "Exchange Rate Responses to Inflation in Bangladesh",
  "publication": "IMF Working Papers, October 1, 2002",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/exchange-rate-responses-to-inflation-in-bangladesh-15959",
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  "summary": "This paper investigates the exchange rate responses to inflation in Bangladesh during the period from 1972-73 to 1999. Both annual and monthly data are used in the investigation.",
  "sections": [
    {
      "heading": "Scope and data",
      "content": "- Period covered: 1972-73 to 1999.\n- Data frequency: both annual and monthly data were used.\n- Exchange rate measure: decline in the value of the currency in terms of the trade-weighted nominal effective exchange rate.\n- Study type: IMF Working Paper by Akhtar Akhtar Hossain (published October 1, 2002)."
    },
    {
      "heading": "Key findings",
      "content": "- Past consumer price inflation generally led to currency devaluation.\n- The effect of inflation on devaluation became weaker following the financial reforms undertaken in the early 1980s.\n- The effect of devaluation on inflation was not significant.\n- The non-significant effect of devaluation on inflation remained robust throughout the sample period."
    },
    {
      "heading": "Analytical emphasis",
      "content": "- Investigates directionality between inflation and exchange rate movements (inflation → devaluation versus devaluation → inflation).\n- Uses both annual and monthly observations to test persistence and robustness of relationships."
    },
    {
      "heading": "Robustness and temporal variation",
      "content": "- The inflation → devaluation relationship is present over the full sample but shows a structural weakening after early-1980s financial reforms.\n- The devaluation → inflation relationship is consistently non-significant across the entire 1972-73 to 1999 sample.\n\nAkhtar Akhtar Hossain, \"Exchange Rate Responses to Inflation in Bangladesh\", IMF Working Papers 2002, 166 (2002), DOI: https://doi.org/10.5089/9781451858112.001\n\n---\n\n Content in this bundle\n\n- Exchange Rate Responses to Inflation in Bangladesh - WP/02/166\n  - Exchange Rate Responses to Inflation in Bangladesh - WP/02/166 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Exchange Rate Responses to Inflation in Bangladesh - WP/02/166 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/exchange-rate-responses-to-inflation-in-bangladesh-15959"
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    "Authors: Akhtar Akhtar Hossain",
    "Published: October 1, 2002",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451858112.001",
    "Period covered: 1972-73 to 1999.",
    "Data frequency: both annual and monthly data were used.",
    "Exchange rate measure: decline in the value of the currency in terms of the trade-weighted nominal effective exchange rate.",
    "Study type: IMF Working Paper by Akhtar Akhtar Hossain (published October 1, 2002).",
    "Past consumer price inflation generally led to currency devaluation.",
    "The effect of inflation on devaluation became weaker following the financial reforms undertaken in the early 1980s.",
    "The effect of devaluation on inflation was not significant.",
    "The non-significant effect of devaluation on inflation remained robust throughout the sample period.",
    "Investigates directionality between inflation and exchange rate movements (inflation → devaluation versus devaluation → inflation).",
    "Uses both annual and monthly observations to test persistence and robustness of relationships.",
    "The inflation → devaluation relationship is present over the full sample but shows a structural weakening after early-1980s financial reforms.",
    "The devaluation → inflation relationship is consistently non-significant across the entire 1972-73 to 1999 sample.",
    "**Exchange Rate Responses to Inflation in Bangladesh - WP/02/166**"
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