Inflation in Bangladesh and Its Reason and Solution Essay Sample

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There are figure of factors behind the lifting tendency of rising prices in Bangladesh. The factors contributed the most in the rise hiking of indispensable points. peculiarly nutrient. are slow growing in agribusiness. rise in the universe monetary values of nutrient points. crisp depreciation of taka against US dollar and particularly against the Indian rupee. and rise in the monetary values of Diesel and kerosine. These causes affect our general people straight. As per capita GDP is non reacting with rising prices. buying power of people has shrunk drastically. Food rising prices is doing more jobs for rural people than urban people. And loss of Taka’s value is doing people go down category hierarchy. We recommend that Bangladesh Bank should take necessary stairss to cut down rising prices rate. We have to be concerned about devaluation of our currency. Inflation is a complex. dynamic procedure which can non be comprehended merely through occasional arguments or newspaper articles. Rigorous research is needed to understand rising prices kineticss and its deductions for pecuniary policy. Much of the duties lay within the horizon of local universities. policy institutes. and in peculiar the Bangladesh Bank.

Table of Contentss

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Introduction
Inflation is an addition in the sum of currency in circulation. ensuing in a comparatively crisp and sudden autumn in its value and rise in monetary values: it may be caused by an addition in the volume of paper money issued or of gold mined. or a comparative addition in outgos as when the supply of goods fails to run into the demand. This definition includes some of the basic economic sciences of rising prices and would look to bespeak that rising prices is non defined as the addition in monetary values but as the addition in the supply of money that causes the addition in monetary values i. e. rising prices is a cause instead than an consequence. Inflation’s effects on an economic system are assorted and can be at the same time positive and negative. Negative effects of rising prices include a lessening in the existent value of money and other pecuniary points over clip. uncertainness over future rising prices may deter investing and nest eggs. and high rising prices may take to deficits of goods if consumers begin stashing out of concern that monetary values will increase in the hereafter. Positive effects include guaranting cardinal Bankss can set nominal involvement rates ( intended to extenuate recessions ) . and encouraging investing in non-monetary capital undertakings. Today. most mainstream economic experts favor a low. steady rate of rising prices. The undertaking of maintaining the rate of rising prices low and stable is normally given to pecuniary governments. By and large. these pecuniary governments are the cardinal Bankss that control the size of the money supply through the scene of involvement rates. through unfastened market operations. and through the scene of banking modesty demands.

Components of rising prices:
Inflation=Expected inflation-? ( U-U* ) +V
Here.
? = Sensitivity
U*= Natural rate of unemployment
U= Unemployment
V= Supply dazes
Policy shaper do non hold any influence over Supply daze & A ; expected rate of rising prices. So. they try to pull off rising prices by commanding unemployment rate. Measure of Inflation:
Inflation is normally estimated by ciphering the rising prices rate of a monetary value index. normally the Consumer Price Index. The Consumer Price Index measures monetary values of a choice of goods and services purchased by a “typical consumer” . The rising prices rate is the per centum rate of alteration of a monetary value index over clip. For case. in January 2010. the Bangladesh Consumer Price Index was 324. 21. and in January 2011 it was 350. 54. The expression for ciphering the one-year per centum rate rising prices in the CPI over the class of 2010 is: ( 350. 54-324. 21 ) /324. 21=0. 103 or 10. 3 %







The ensuing rising prices rate for the CPI in this one twelvemonth period is 10. 3 % . intending the general degree of monetary values for typical Bangladeshi consumers rose by 10. 3 % in 2010.

Types of Inflation
There are two major types of rising prices:
1. Cost-push rising prices
This is caused by a bead in aggregative supply ( possible end product ) . This may be due to natural catastrophes. or increased monetary values of inputs. For illustration. a sudden lessening in the supply of oil can make cost-pull rising prices. It is besides called “Supply daze inflation” . Because it is caused by inauspicious supply daze. Example: if Production Costs increases. a company may necessitate to increases rewards if labourers demand higher wages ( due to increasing monetary values and therefore cost of populating ) or if labour becomes more specialised. If the cost of labour. a factor of production. additions. the company has to apportion more resources to pay for the creative activity of its goods or services. To go on to keep ( or increase ) net income borders. the company passes the increased costs of production on to the consumer. doing retail monetary values higher. Along with increasing gross revenues. increasing monetary values is a manner for companies to invariably increase their bottom lines and basically turn. Another factor that can do additions in production costs is a rise in the monetary value of natural stuffs. It happened because of scarceness of natural stuffs.


Figures: Cost-Push Inflation
To visualise how cost-push rising prices plants. we can utilize a simple price-quantity graph demoing what happens to switch in aggregative supply. The graph above shows the degree of end product that can be achieved at each monetary value degree. As production costs addition. aggregative supply lessenings from AS1 to AS2 ( given production is at full capacity ) . doing an addition in the monetary value degree from P1 to P2. The principle behind this addition is that. for companies to keep ( or increase ) net income borders. they will necessitate to raise the retail monetary value paid by consumers. thereby doing rising prices. Cost-push rising prices cause inflationary recession. 2. Demand-Pull Inflation

The rate of rising prices accelerates whenever aggregative demand is increased beyond the ability of the economic system to bring forth ( its potency end product ) . Hence. any factor that increases aggregative demand can do rising prices. Example: an addition in authorities purchases can increase aggregative demand. therefore drawing up monetary values. Another factor can be the depreciation of local exchange rates. which raises the monetary value of imports and. for aliens. reduces the monetary value of exports. As a consequence. the buying of imports lessenings while the purchasing of exports by aliens additions. thereby raising the overall degree of aggregative demand ( we are presuming aggregative supply can non maintain up with aggregative demand as a consequence of full employment in the economic system ) . Rapid abroad growing can besides light an addition in demand as more exports are consumed by aliens.

Figures: Demand-Pull Inflation
Demand-pull rising prices is a merchandise of an addition in aggregative demand that is faster than the corresponding addition in aggregative supply. When aggregative demand additions without a alteration in aggregative supply. the ‘quantity supplied’ will increase ( given production is non at full capacity ) . Looking once more at the price-quantity graph. we can see the relationship between aggregative supply and demand. If aggregative demand additions from AD1 to AD2. in the short tally. this will non alter ( displacement ) aggregate supply. but cause a alteration in the measure supplied as represented by a motion along the AS curve. The principle behind this deficiency of displacement in aggregative supply is that aggregative demand tends to respond faster to alterations in economic conditions than aggregative supply. As companies increase production due to increased demand. the cost to bring forth each extra end product additions. as represented by the alteration from P1 to P2. The principle behind this alteration is that companies would necessitate to pay workers more money ( e. g. overtime ) and/or invest in extra equipment to maintain up with demand. thereby increasing the cost of production.

Causes of rising prices:
The major causes of rising prices are shortly described below:
1. Excess money supply:
Money supply plays a big function in rising prices. Harmonizing to the celebrated monetarist economic expert Milton Friedman. “Inflation is ever and everyplace a pecuniary phenomenon. ” If the Central Bank does non command the money supply adequately. it may really turn at a rate faster than that of the possible end product in the economic system. or existent GDP. The belief is that this will drive up monetary values and hence. rising prices. Low involvement rates correspond with a high degree of money supply and let for more investing in large concern and new thoughts which finally leads to unsustainable degrees of rising prices as inexpensive money is available. The recognition crisis of 2007 is a really good illustration of this at work. The survey of pecuniary history shows that rising prices has ever been a pecuniary phenomenon. The measure theory of money. merely stated. says that any alteration the sum of money in a system will alter the monetary value degree. This theory begins with the equation of exchange: MV = PQ


Where
M = the nominal measure of money.
V = the speed of money in concluding outgos ;
P = the general monetary value degree ;
Q = an index of the existent value of concluding outgos ;
It is assumed that the speed of money is unaffected by pecuniary policy ( at least in the long tally ) . and the existent value of end product is determined in the long tally by the productive capacity of the economic system. Under these premises. the primary driver of the alteration in the general monetary value degree is alterations in the measure of money. With exogenic speed ( that is. speed being determined externally and non being influenced by pecuniary policy ) . the money supply determines the value of nominal end product ( which equals concluding outgo ) in the short tally. In pattern. speed is non exogenic in the short tally. and so the expression does non needfully connote a stable short-term relationship between the money supply and nominal end product. However. in the long tally. alterations in speed are assumed to be determined by the development of the payments mechanism. If speed is comparatively unaffected by pecuniary policy. the long-term rate of addition in monetary values ( the rising prices rate ) is equal to the long tally growing rate of the money supply plus the exogenic long-term rate of speed growing minus the long tally growing rate of existent end product.




2. Unemployment:
A connexion between rising prices and unemployment has been drawn since the outgrowth of big scale unemployment in the nineteenth century. and connexions continue to be drawn today. There is an reverse relation between rate of rising prices and the rate of unemployment in an economic system. The more the enterpriser extends the employment chance the more he has to pay to that peculiar factor of production and the more payment to factor of production the addition in the cost of bring forthing a unit will be observed and in order to keep the profitableness of the merchandise the enterpriser will blow up the monetary value of that merchandise. A similar procedure will be observed throughout the economic system when the authorities intends to make occupation. The monetary value of merchandises or services. where the work force is installed. will increase hence an addition in the rate of rising prices will be seeable throughout the economic system. Celebrated economic expert A. W Philips discovered a graphical manner to demo this relation which is known as Philips curve. Phillips curve showed that unemployment and rising prices shared an opposite relationship: rising prices rose as unemployment fell. and rising prices fell as unemployment rose. Since two major ends for economic policy shapers are to maintain both rising prices and unemployment depression. Phillip’s find was an of import conceptual discovery.

Figure: Phillips Curve
The rising prices rate is represented on the perpendicular axis in units of per centum per twelvemonth. The unemployment rate is represented on the horizontal axis in units of per centum. The curve shows the degrees of rising prices and unemployment that tend to fit together about. based on historical informations. 3 International loaning & A ; national debt

Inflation can besides be caused by international loaning and national debts. As states borrow money. they have to cover with involvements. which in the terminal cause monetary values to lift as a manner of maintaining up with their debts. A deep bead of the exchange rate can besides ensue in rising prices. as authoritiess will hold to cover with differences in the import/export degree.

Present State of Inflation and comparing ( state wise Scenario ) with some developing states: Harmonizing to the Bangladesh Bureau of Statistics ( BBS ) . the national rising prices in Bangladesh is 8. 56 % on point-to-point footing in June 2012 ; whereas the food-inflation hit 7. 08 % and the non-food rising prices hit 11. 72 % in the same period. The rural rising prices is 7. 88 % on point-to-point footing in June 2012 ; whereas rural nutrient and non-food rising prices smasher to 6. 02 % and 11. 88 % consecutively in the same period. The urban rising prices is 10. 29 % on point-to-point footing in June 2012 every bit good as consecutive nutrient and non-food rising prices for the same period smasher to 9. 57 %
and 11. 28 % . By detecting above informations it can state that national rising prices is extremely influenced by urban rising prices and non-food rising prices. Table 1: Inflation Rate ( Point-to-Point ) FY2011-12

( 1995-96=100 )
| | Jul. 11| Aug. 11| Sep. 11| Oct. 11| Nov. 11| Dec. 11| Jan. 12| Feb. 12| Mar. 12| Apr. 12| May. 12| Jun. 12| National| General| 10. 96| 11. 29| 11. 97| 11. 42| 11. 58| 10. 63| 11. 59| 10. 43| 10. 1| 9. 93| 9. 15| 8. 56| | Food| 13. 4| 12. 7| 13. 75| 12. 82| 12. 47| 10. 4| 10. 9| 8. 92| 8. 28| 8. 12| 7. 46| 7. 08| | Non-food| 6. 46| 8. 76| 8. 77| 9. 05| 10. 19| 11. 38| 13. 16| 13. 57| 13. 96| 13. 77| 12. 72| 11. 72| Rural| General| 11. 09| 11. 34| 11. 85| 11. 01| 11. 37| 10. 25| 11. 15| 9. 79| 9. 4| 9. 21| 8. 38| 7. 88| | Food| 13. 53| 12. 59| 13. 35| 11. 94| 11. 8| 9. 8| 10. 18| 8. 05| 7. 21| 7. 01| 6. 3| 6. 02| | Non-food| 6. 14| 8. 74| 8. 69| 9. 01| 10. 46| 11. 62| 13. 23| 13. 57| 14. 17| 13. 97| 12. 82| 11. 88| Urban| General| 10. 65| 11. 2| 12. 29| 12. 47| 12. 11| 11. 62| 12. 73| 12. 06| 11. 89| 11. 77| 11. 12| 10. 29| | Food| 13. 12| 12. 94| 14. 67| 14. 87| 14. 04| 12. 28| 12. 56| 10. 96| 10. 8| 10. 72| 10. 17| 9. 57| | Non-food| 7. 32| 8. 8| 9| 9. 17| 9. 47| 10. 74| 12. 97| 13. 59| 13. 42| 13. 25| 12. 44| 11. 28| Beginning: Bangladesh Bureau of Statisticss

Figure 1: The point-to-point rising prices scenarios in Bangladesh H1 FY12 ( July-December 2011 )

In first half of the financial twelvemonth ( FY ) 2012 national point-to-point nutrient rising prices was high due to the patent rise in planetary nutrient. In first half of FY 2012 highest national point-to-point nutrient rising prices was 13. 75 % in September. 2011 and over all national point-to-point nutrient rising prices was 11. 97 % in September. 2011. On the other manus. in first half of FY 2012 national point-to-point non-food rising prices bit by bit increasing due to planetary trade good monetary value addition. a tough addition in domestic recognition and depreciation of the taka. In first half of FY 2012 highest domestic recognition was 463. 473. 70 crore in December. 2011and lowest domestic recognition was 419. 829. 60 crore in July. 2011. In first half of FY 2012 highest national point-to-point non-food rising prices was 11. 83 % in December. 2011 and at the same clip over all national point-to-point non-food rising prices was 10. 63 % .

Figure 2: The point-to-point rising prices scenarios in Bangladesh H2 FY12 ( January-June 2012 )

In the 2nd half of FY 2012 nutrient rising prices was bit by bit diminishing because of planetary nutrient monetary value worsening. Highest point-to-point nutrient rising prices was 10. 9 % in January. 2012 and lowest point-to-point nutrient rising prices was 7. 08 % in June. 2012. This worsening nutrient rising prices besides reflected in Overall rising prices and at June. 2012 overall point-to-point rising prices was 8. 56 %

On the other manus. in the 2nd half of 2012 national non-food increasing in 3rd one-fourth due to show addition in domestic adoption. high import demand and decreasing in 4th one-fourth due to strong monetary value force per unit areas came from upward accommodations in fuel and electricity monetary values. Highest point-to-pint non-food rising prices was 13. 96 % in March. 2012 at the same clip domestic recognition hit to 581. 495 crore. Finally. in June. 2012 overall rising prices and non-food rising prices was consecutively 8. 56 % and 11. 72 % . Inflation in South Asiatic States

Countries/Years| 2007| 2008| 2009| 2010| 2011| 2012Projected| 2013Projected| Afghanistan| 13. 0| 26. 8| 10. 0| 7. 7| 8. 0| 4. 6| 5. 0|
Bangladesh| 7. 2| 9. 9| 6. 7| 8. 7| 10. 2| 11. 0| 8. 5|
Bhutan| 5. 2| 6. 4| 7. 1| 7. 0| 8. 6| 7. 3| 6. 5|
India| 4. 8| 8. 3| 3. 6| 9. 4| 9. 5| 7. 0| 6. 5|
Maldives| 7. 4| 12. 3| 4. 0| 4. 7| 3. 5| 4. 5| 7. 5|
Nepal| 6. 4| 7. 7| 13. 2| 9. 6| 8. 5| 8. 0| 7. 0|
Pakistan| 7. 8| 12. 0| 20. 8| 15. 5| 9. 7| 12. 0| 10. 0|
Sri Lanka| 15. 8| 22. 6| 3. 5| 6. 9| 6. 7| 8. 0| 7. 0|
South Asia| 5. 9| 9. 3| 5. 6| 6. 0| 6. 0| 6. 5| 6. 5|
Beginning: Asiatic Development Outlook. 2012








Country-wise Scenario
Afghanistan: Afghanistan has been sing in the direction of rising prices and growing. The rising prices rate was 26. 8 in 2008 compared to 13 % in 2007. This was due to chiefly hapless crop. high nutrient and fuel monetary values. bing jurisprudence and order state of affairs haltering free motion of goods within the state. Consumer monetary values are extremely volatile because of heavy import dependance. including nutrient and fuel. Overall ( year-on-year ) rising prices. which peaked at 18. 2 % in January 2011. receded to 9. 2 % in February 2012. chiefly due to a autumn in nutrient rising prices. which dropped from 21. 0 % to 7. 1 % chiefly because of worsening planetary nutrient monetary values. Nonfood rising prices was reasonably stable in this period—varying about 14 % —kept high by monetary value accommodations for electricity and fuel. building stuffs. conveyance. and lodging rents. Average rising prices in FY2012 is estimated at 4. 6 % .

Bangla deshs: Average one-year rising prices rose to 8. 3 % from 7. 3 % in FY2010 owing to the marked rise in planetary nutrient and trade good monetary values. a strong enlargement in domestic recognition. and depreciation of the taka in the latter half of the financial twelvemonth. Monetary value force per unit areas have intensified in FY2012 and year-on-year rising prices climbed somewhat from 10. 2 % in June 2011 to 10. 4 % in February 2012 ; nonfood rising prices more than doubled to 13. 6 % but nutrient rising prices edged down to 8. 9 % . In add-on to the rapid enlargement in recognition. stronger monetary value force per unit areas came from upward accommodations in domestic administered fuel and electricity monetary values. and from sharper taka depreciation because of continued high import demand. particularly fuel imports. The nutrient rising prices rate was 9. 15 % in May 2012.

Bhutan: Local monetary value motions of Bhutan continued to follow India’s because Bhutan’s currency is pegged to India’s and because the state keeps strong trading ties with its elephantine neighbour ( taking approximately 90 % of exports and supplying 75 % of imports ) . Bhutan’s mean rising prices. therefore. rose to 8. 6 % in FY2011. Food monetary values rose by 9. 3 % and nonfood monetary values by 8. 0 % .

India: It is seen that the recent developments are disputing India’s strong growing public presentation of recent old ages. Emerging capacity restraints. continued rapid enlargement in recognition. and partial pass-through of planetary trade good monetary value additions have triggered steep domestic rising prices and attendant pecuniary tightening. The rising prices recorded in 2008 was 8. 3 % which was dropped to 3. 6 % in 2009. Services continued to turn quickly. at 9. 4 % . accounting for about 80 % of overall GDP growing and reflecting continued strong public presentation in trade. hotels. conveyance. communications. and fiscal services. With good monsoons. rice and wheat production is estimated to hold hit records. Agriculture’s 2. 5 % enlargement was low compared with the old year’s weather-related 7. 0 % recovery. but still came in stopping point to tendency ( 3 % ) .

Inflation persisted at 9. 5–10 % through most of FY2011 despite earlier unit of ammunitions of pecuniary tightening. eased to 7. 0 % by February 2012. This moderateness mostly reflected a bead in nutrient monetary values. A placeholder for the nucleus rate. nonfood manufactured goods rising prices remained at around 8 % so fell to 5. 5 % in February 2012. Since pecuniary tightening aimed to stabilise this step. the cardinal bank has seen advancement in conveying it down to its historical norm of 4 % . consistent with keeping stable inflationary outlooks.

Pakistan: Severe inundations at the start of FY2011 ( ended 30 June 2011 ) disrupted economic activity in most sectors in the first half of the twelvemonth. A little recovery during the 2nd half. supported by higher monetary values for cardinal exports and expanded services activity in portion related to deluge relief—kept growing positive at 2. 4 % for the twelvemonth ( Figure 3. 20. 1 ) . Solid growing in farm animal. minor harvests. and wheat and sugar cane outweighed a pronounced autumn in cotton and rice crops to let a 1. 2 % enlargement in agribusiness. Industry. nevertheless. stagnated under the weight of energy deficits and low investing. Thus for the 4th twelvemonth the economic system was characterized by low growing ( a period norm of 3 % ) . good below the estimated 7 % needed to supply a steadfast footing to supply occupations to new labor-force entrants. addition per capita income. and cut down poorness.

Inflation. already under force per unit area from increasing planetary trade good monetary values. remained high. reflecting flood-related deficits. particularly for nutrient. and higher costs due to damaged conveyance webs. Top outing at more than 15 % in December 2010. rising prices eased modestly in the 2nd half. and declined to 13. 3 % for the twelvemonth to June 2011.

Sri Lanka: Overall rising prices remained in individual figures in 2011. averaging 6. 7 % and small changed from a twelvemonth earlier ( Figure 3. 21. 2 ) . Food rising prices. though. was volatile. reflecting inundation harm. harvest failures. and monetary value force per unit area early in the twelvemonth and. subsequently. worsening monetary values as production recovered. Nonfood rising prices trended upward. due to strong demand and monetary value additions for Diesel. gasoline. kerosine. liquefied crude oil gas. and bus menus tardily in 2011 and in February 2012. when it reached 9. 2 % . Fuel monetary values were suppressed during 2011 as international oil monetary values shot up by 41 % .

Problems faced by Entrepreneurs and Consumers

Two noteworthy jobs are associated with inflation–uncertainty and hit-or-miss redistribution. Inflation. particularly rising prices that varies from month to month and twelvemonth to twelvemonth. makes long-run be aftering rather hard. Monetary values. rewards. revenue enhancements. involvement rates. and other nominal values that enter into consumer. concern. and authorities planning determinations can be significantly affected by rising prices. Furthermore. rising prices tends to redistribute income and wealth in a hit-or-miss manner–some people win and some people lose. This redistribution might non be that desired by society. neglecting to advance any of the basic economic ends of efficiency. equity. stableness. growing. or full-employment.

Policies to undertake rising prices
Terming the taming of the rising prices rate to 7. 5 per cent this fiscal a large challenge for the authorities. general rising prices. on a point-to-point footing. dropped marginally to 10. 10 per cent in March. 2012 from 10. 43 per cent in the old month. due chiefly to a slow rise in nutrient monetary values. In September 2011. the country’s consumer monetary value index ( CPI ) was at a record two-decade high of 11. 97 per cent. The national nutrient rising prices came down to 8. 28 per cent in March. 2012 from 8. 92 per cent in the old month. but non-food rising prices jumped to 13. 96 per cent from 13. 57 per cent chiefly due to the recent addition in power duty. fuel monetary values and family points. Government has reduced its adoption from the banking system over the last twosome of yearss to undertake the turning rate of rising prices. Government’s borrowing from the banking system amounted to 161. 75 billion BDT from January 3 to January 12 this twelvemonth while the sum was 173 billion BDT during the same period from December 25 last twelvemonth to January 3 this twelvemonth. Bangladesh Bank information shows. Borrowing from the banking sector has been reduced to guarantee handiness of private sector financess in banking system.

The authorities scaled down its bank adoption as brawny adoption from the state-owned Bankss may take the enterprisers and industrialists to be deprived of recognition installation in their demands. Earlier. the authorities has set a mark to borrow 189. 57 billion from the banking sector this financial. Beginnings said 12 commercial Bankss had been confronting tough clip after supplying loans to the authorities. Meanwhile. the authorities has increased the rate of authorities securities ( Bond ) as the involvement on sedimentation had been increased late. The 12 primary trader Bankss will hold to incur a entire loss of 18. 55 billion BDT due to the hiking in securities’ rates. Experts opined that the cut downing inclination in bank adoption is a good mark for the country’s state.

If the authorities borrows straight from Bangladesh Bank. it should seek to return the money every bit early as possible as the cardinal bank has no back up for financess. On the other manus. brawny adoption from cardinal bank pushes up rising prices rate which finally cast the major impact on general people. BB has been taking tight pecuniary policy sing import and internal recognition distribution. The cardinal bank has been detering the Bankss non to open Letter of Credits ( LCs ) for importing epicurean trade goods or administering loan in unproductive sectors. Keeping essentials’ monetary value stalls is a critical factor to incorporate high rising prices which can be ensured through cut downing government’s adoption. Effective pecuniary and financial policy and conveying subject in exchange rate mechanism and direction will assist to cut down rising prices. IMF. World Bank and other giver bureaus are besides seting force per unit area on authorities to cut down bank adoption.

Some Specific Plans
* The cardinal Bank increased its cardinal involvement rates by fiftieth footing point. This is the 5th clip rates were raised since March as the cardinal bank is fighting to command high rate of rising prices. The cardinal bank besides announced that it was raising the repo rate to 7. 75 % . it will shoot money to the banking system. BB besides increases the rearward repo rate to 5. 75 % . Through the rearward repo rate. it will absorb money from the banking system. However. it may demo an upward tendency as the authorities decided to raise oil monetary value and power duties to cut the subsidy. This hiking in oil monetary value is responsible for non nutrient rising prices acceleration Since May. This obstinate rising prices has forced the cardinal bank to raise the cardinal involvement rate by 50 footing points last September. 4th clip in the last twelvemonth. * Programs such as feeding the school kids. nutrient for work plan. unfastened market gross revenues etc are taken by the authorities.

Decision

Mentions

Bibliographic Mentions:
* Macroeconomicss by
N. Gregory Mankiw
* Macro Economicss by
Rudiger Dornbusch. Stanley Fischer & A ; Richard Startz



Diaries:
* Bangladesh Economic Review ( 2009-10 )
* Major Economic Indicators. Bangladesh Bank. April ‘11 * Bangladesh Economic Update. Vol. 2. no. 1. Jan-Feb ‘11
Web sites:
* World Wide Web. banladesh-bank. org
* World Wide Web. adb. org
* World Wide Web. International Monetary Fund. org
* World Wide Web. bulletin board system. gov. Bachelor of Divinity






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