Bangladesh Stock Market Bubble Burst: The Transgression of Economic Factors

Authors

  • Habibullah
  • Syed Zabid Hossain

DOI:

https://doi.org/10.33516/rb.v43i1.51-63p

Keywords:

Macroeconomic Factors, Stock Market Crash, Bubble Burst.

Abstract

The study strives to find out the root economic causes that helped create Bangladesh capital market bubble and subsequent burst. Our study findings confirm that CRR, FDI, deposit rate, turning black money into white money, banks' exposure to capital market, and margin loan had contributed to the creation of bubble, while money supply and GDP growth had no influence on the same. Moreover, Bangladesh Bank's policy to control money market had aggravated the volatility in capital market. When the artificially created high prices inevitably fell, the bubble burst and most let alone investors were shaken out of the market.

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Published

2017-04-01

How to Cite

Habibullah, ., & Hossain, S. Z. (2017). Bangladesh Stock Market Bubble Burst: The Transgression of Economic Factors. Research Bulletin, 43(1), 51–63. https://doi.org/10.33516/rb.v43i1.51-63p

Issue

Volume 43, Issue 1, April 2017

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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