Abstract
ABSTRACT This study examines the influences of asymmetry in exchange rate misalignment on economic growth of Bangladesh using utilizing time series data over the period from 1980 to 2020. The outcomes of the study symmetrically show that exchange rate misalignment has a significant impact on economic growth. In contrast, the adoption of NARDL technique gives substantial evidence for asymmetric effects, revealing that undervaluation supports economic growth while overvaluation hampers it. This analysis supports implementing a market-based equilibrium exchange rate system. It informs the regulators, policy makers, and market specialists that the customized exchange rate policies support sustained long-term economic growth.
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