The Target and Achievements of Private Sector Credit in Bangladesh: A Monetary Policy Analysis

Abstract

This paper tries to assess the monetary policy on macroeconomic indicators in Bangladesh. The central bank declares monetary policy statement twice in every year to pursue its macroeconomic goals. The assessment provides that during the sample period, monetary policy is not strong enough to control the inflation rate. In addition, policies did not appear itself as ignition to the investment process as well as the growth rate of GDP. This assessment leaves an interesting outcome: monetary policy is not independent and strong enough to pursue its macroeconomics goals.
 JEL Classification Code: M51, M52

Analysis of Trend and Sources of Government Budget Deficit Financing in Bangladesh

“…There are questionable thoughts on the connection between economic growth and budget deficit: the Keynesian analysts contended that there existed a positive connection between the two arrangements, the neo-classical analysts contend the inverse, while, the Ricardian identicalness speculation asserts that there was unbiased nexus between budget deficit and economic growth in a nation. A review of previous investigations found that budget deficits have an inverse effect on economic growth (Adeoye, 2006;Akinmulegun, 2014;Awe & Funlayo, 2014;Haider, Shaon, & Kabir, 2016;Keho, 2010;Oladipo & Akinbobola, 2011;Muzib, Liton, Sadekin, & Mahmud, 2014) while other studies showed that the financing of the deficit had the positive effect of economic growth (Adesuyi & Falowo, 2014;Antwi et al, 2013;Emmanuel, 2013;Hassan & Akter, 2014;Rana & Wahid, 2017;Mushtaq & Zaman, 2013;Tung, 2018). In this manner, although various studies have been conducted on-budget deficit in Bangladesh, however none of these studies have focused on the sources of budget deficit financing in Bangladesh.…”

Analysis of Trend and Sources of Government Budget Deficit Financing in Bangladesh

“…There are questionable thoughts on the connection between economic growth and budget deficit: the Keynesian analysts contended that there existed a positive connection between the two arrangements, the neo-classical analysts contend the inverse, while, the Ricardian identicalness speculation asserts that there was unbiased nexus between budget deficit and economic growth in a nation. A review of previous investigations found that budget deficits have an inverse effect on economic growth (Adeoye, 2006;Akinmulegun, 2014;Awe & Funlayo, 2014;Haider, Shaon, & Kabir, 2016;Keho, 2010;Oladipo & Akinbobola, 2011;Muzib, Liton, Sadekin, & Mahmud, 2014) while other studies showed that the financing of the deficit had the positive effect of economic growth (Adesuyi & Falowo, 2014;Antwi et al, 2013;Emmanuel, 2013;Hassan & Akter, 2014;Rana & Wahid, 2017;Mushtaq & Zaman, 2013;Tung, 2018). In this manner, although various studies have been conducted on-budget deficit in Bangladesh, however none of these studies have focused on the sources of budget deficit financing in Bangladesh.…”