Although Bangladesh Bank is taking several initiatives to reduce inflation, only implementing monetary policies is not enough as fiscal policies also play a big role in this regard, according to the South Asian Network on Economic Modeling (Sanem).
Any effort at halting inequality and reversing the trend has to start from a political commitment, an understanding of the factors at work, and adoption of necessary measures to attain the goals.
Reforms following the IMF prescription should not harm disadvantaged groups
The upcoming budget poses significant challenges – arguably the most challenging in recent times – for economic policymaking in Bangladesh.
High inflation can impose serious and lasting costs on the economy and people. But the distributive effects of inflation—the way it transfers money from some individuals to others—are complex.
It seems the government is doing an about-turn from the austerity stance taken at the start of the fiscal year.
To improve medium-term growth, China must heed the lessons of its own history and focus on removing barriers to market entry and entrepreneurship. An economy’s growth rate comes from a combination of an increase in the average size of existing firms (intensive-margin growth) and an increase in the number of firms (extensive-margin growth). A study of the Chinese manufacturing sector that I co-authored with Xiaobo Zhang suggests that during the last few decades, extensive-margin growth accounted for about 70 percent of overall GDP expansion.
While the government is distracted by elections, the financial economy will suffer