This study aims to assess the effectiveness of the monetary policy transmission mechanism on the money supply channel to the economy with the goal of prices (inflation) and income (Real GDP) from the first quarter of 2010 to the fourth quarter of 2021. The variables in this study include the BI Rate or Bank Indonesia reference interest rate, the money supply M0, the money supply M1, the money supply M2, inflation, and real GDP. The data processing phases begin with verifying data stationarity, optimum lag processing, and the Johansen co-integration test. Then this research employs an analytical method, namely the vector error correction model (VECM). The effectiveness of monetary policy transmission was analyzed using the optimal lag test. Then the impulse response and variance decomposition function to see the magnitude of the response of each variable. This study shows that the transmission of monetary policy to inflation through the money supply channel is more effective than the money supply channel to real GDP.

Purpose. To examine long-run and short-run effects of industrial financial development on carbon emissions in Bangladesh. Methodology. The auto-regressive distributed lag model was implemented on the data collected from 1976 to 2020 to exhibit cointegration in regression form. Traditional unit roots as well as the Zivot-Andrews structural break test was conducted for investigating a significant single-break. The auto-regressive distributed lag model (ARDL) model approved long-run cointegration having a structural break in this study. Findings. The results conclude that energy consumption triggers carbon emissions with a significant effect on short and long-run models but financial development has no significant effect on environmental degradation. A considerable U-shape Environmental Kuznets Curve hypothesis is observed at the nexus of carbon emissions and economic growth. Originality. The current study proposed to contribute to the existing literature by assessing the effects of financial development, economic growth, and energy consumption on environmental degradation in Bangladesh using modern econometric methodologies. Practical value. The results obtained will be useful to scientists, economists and practitioners dealing with economic and environmental development of different industries.