Monetary Coverage of Bangladesh Essay

An essay


" Economic Policy of Bangladesh”


Program Title: Macro Economics

Posted to:

Professor Abdul Bayes

Department of Business Operations

East West University

Posted by:

Minhajul Abedin

ID: 2013-1-95-019

Section: 01

Time of submitter: 24 aug, 2013

Financial Policy of Bangladesh

Decisions regarding the financial policy are very important for any country today. To control the supply of money by simply targeting a rate of interest, and also to promote the economic development and balance, a good control over the financial policy is a must for every nation. Bangladesh is known as a developing nation and its economic policies are generated by the central bank of the region. Though the property size of Bangladesh is not that big but in conditions of total people, it is a big country relative to additional countries. As a developing region it is undertaking so many developments and business projects both publicly and privately. The monetary insurance plan of Bangladesh is playing a pivotal function to control the amount of money supply of the which in turn is promoting the complete economic regarding the country.

This essay briefly discusses about some of the activities of the central bank related with the economic policy of Bangladesh along with some additional primary issues which are associated with the basic economic policy. From this essay the " Budgetary Policy of Bangladesh” will probably be presented by using this pattern,

1 A brief overview of budgetary policy

a couple of Objectives with the monetary insurance plan

3 Types of monetary policy

4 Tools to implement the monetary plan

5 Firm responsible in Bangladesh intended for the formula and setup of the economic policy 6th The economic policy structure of Bangladesh

7 The bucks supply method in Bangladesh

8 Elements determining the cash supply in Bangladesh

being unfaithful Conclusion.

A quick overview of economic policy:

Monetary policy is the task by which the monetary authority of a rustic controls the supply of money, generally targeting a rate of interest for the purpose of promoting economic growth and stability. The required goals generally include comparatively stable prices and low unemployment. Monetary coverage of a nation can be both expansionary or contractionary. A great expansionary policy is applied to overcome the unemployment by increasing the interest rate, which in turn promotes people, and businesses to take loans in the banks to begin new businesses or expand existing businesses. A contractionary financial policy is definitely implemented by expanding the bucks supply slower than usual to lessen the pumpiing rate, and to avoid the resulting deteriorated advantage values through the increased prices in the economy.

Aims of the economic policy:

A lot of the times it is rather difficult to get a country to select the right target for its budgetary policy. The objectives are selected following carefully looking at the specific economical conditions and requirements. The primary objectives with the monetary policy are,

1 To promote economic growth

2 Achieve stable exchange rate

3 To achieve price stability

4 To hold the economy fully employed

a few To control the credits

6th To reduce the inequalities between income and wealth.

six To create and also to expand financial institutions.

Types of monetary insurance plan:

The base funds is the area of the commercial banks' reserves that are taken care of in accounts with their central bank plus the total currency circulating in the open public (which involves the currency, also known as vault cash, that is physically saved in the banks' vault). The customization of this bottom money in blood circulation is the main application for the implementation of any types of economic policy. To improve either how much money or their liquidity the monetary expert modifies the circulation of the base cash by buying or perhaps selling the financial assets in wide open market. To achieve their goals the financial authority uses several tools...

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