What are the respective effects of a unit increase in money demand on real exchange rate and current account, all else equal? The is known to appreciate, but account need not deteriorate, as canonical Marshall Lerner condition instead seems suggest. As this work presents, deteriorates by virtue appreciation due fall supply, equal, vice versa; it further specifies that improves rise demand, versa.

Export is expected to have a favorable impact on GDP growth, and the exchange rate major export thus earnings. The relationship between hotly debated topic in macroeconomics, goal of this research see if Marshall-Lerner condition holds incase Bangladesh that devaluation domestic currency increase Explanatory variables model study are rate, foreign income (WGDP), (DGDP). Cointegration approaches...