IMPACT OF INFLATION ON THE ECONOMIC GROWTH A CONTEMPORARY SUMMARY ON BANGLADESH

Abstract

It generally assumed that a steady and straightforward inflation rate fuels the economic progress of a nation. Moderate price increases help consumers, intensify investment and consequently boost the country's financial development. This thesis measures the impact of Inflation on Bangladesh's economic growth for 1990 – 2019 and using the regression analysis, ADF Unit-root test (trend regress and drift regress), ARDL Bounds test, Cointegration method framework and studies the long and short-run relationship between economic growth and inflation. ARDL approach used for the analysis of the short-run relationship between Economic growth and inflation. Also, the outcomes show a connection between economic growth and Inflation in Bangladesh's context in the long run. Results confirm that we can expect the future action of the GDP growth by examining inflation trends.