Does the central bank contribute to the political monetary cycles in Bangladesh

摘要: This study aims to explore the impact of elections on inflationary process in Bangladesh i.e., observe whether have any influence monetary variables like money supply, exchanges rate and thus inflation. We used quarterly data as incumbent must give a maximum 3 months’ time caretaker government accomplish election. Our full ARDL estimation suggested that an appreciation exchange just before election reduced inflation significantly effective way incumbent’s gain popularity. found current was positively associated (though not significantly) with previous quarter’s supply measured by M1. The took policies reduce during period voters place more importance recent history. find evidence political cycles Bangladesh. Bank’s independence should be given priority so it can withstand pressure stimulate economy or finance election-related increases spending.