Letter of Transmittal

December 17, 2015

Biplob Kumar Nandi

Senior Lecturer

East West University, Dhaka.

Subject: Submission of term paper on Quantity theory of money.

Dear Sir,

We are submitting the report of Principles of Macroeconomics (ECO102) on

Quantity theory of money (a case study in Bangladesh).

This report examines the velocity of money and inflation; and the real GDP growth
fluctuation causes from money supply. The report has been prepared by collecting
data from different sources. We sincerely hope that the contents of our paper will
meet the requirements of this course and fulfill your expectations.

We hope that you find this report satisfactory.

Sincerely yours,

All of the group members.

i
 Abstract

This case study is designed to examine the fluctuation of inflation rate arises in
different years because of the money supply. And later we have shown the impact
on real GDP growth and inflation.

We have collected the data from Bangladesh Bank website and then organized data
in a table. And then we have drawn different graphs to show the velocity of money,
inflation and real GDP growth. We have shown the velocity of money, inflation and
the real GDP growth in different graphs. And we have discussed about the impact in
basis of that graphs.

ii
 Table of Content

Topic Page No.

1.0 Introduction 1-1

1.1 Background of the study 1-1

1.2 The objective of the study 1-1

1.3 Limitation of the study 1-1

2.0 Methodology of the study 2-2

3.0 The theoretical aspect 2-3

4.0 Analysis of the study 4-9

4.1 Velocity of money 4-5

4.2 Inflation 6-6

4.3 Velocity and real GDP growth 7-7

4.4 Inflation and velocity 8-8

5.0 Conclusion 9-9

iii