This website uses cookies to ensure you have the best experience. Learn more

Monetory Policy Essay

1030 words - 5 pages

Bangladesh Bank announced its monetary policy statement (MPS) for the second half of the current fiscal year (January-June 2012) on January 26. Explicitly or implicitly, the objectives that the MPS seeks to accomplish are:
* Curbing inflation to single digit level,
* Limiting depletion of foreign exchange reserves and establishing external sector equilibrium, and
* Supporting GDP growth of 6.5 - 7.0% in the current fiscal year (FY)
The instrument to achieve these objectives is the containment of broad money growth; primarily by reducing the growth of credit components of monetary aggregates. This article seeks to explore the efficacy of the instrument in realising the avowed objectives. ...view middle of the document...

These problems have been compounded by a relatively slower growth of revenues, albeit at a satisfactory pace in an absolute sense (the growth of tax revenues during July-November 2011 was 16.9% compared to 27.5% in the corresponding period of the previous year). There is hardly any indication in the MPS about how these problems will be resolved. It would, therefore, be unrealistic to expect that growth of credit to the public sector will be halved from 62% to 31%.
The target of growth of credit to the private sector set at 16% (marginally lower than 18% in December 2011) appears achievable. However, recent evidence does not support the assumption that the slowing down of private sector credit growth will greatly reduce inflationary pressure. In fact, private sector credit growth fell continuously from 25.8% in FY11 to 22% in September11 and 18% in December 11; yet inflation has aggravated. The most likely reasons are (a) low growth of private sector credit affects the supply side adversely and (b) the recent increase in inflation is attributable more to the depreciation of exchange rate which stokes cost-push inflation. This point leads to the discussion of the effectiveness of MPS in establishing external sector equilibrium.
External sector equilibrium
MPS hopes that the depreciating exchange rate will accelerate exports. This again is likely to prove unrealistic. Exchange rate has been more or less consistently depreciating since December 2010, but export growth has been consistently falling (it was 41.5% during FY 11, 22.6% during July-September and 14.8% during July- December of FY 12). An in-depth examination is needed to ascertain what is causing this scenario. There may be impediments both on the supply side and the demand side. There has been some improvement in remittance growth, rising from 6% in FY 11 to 9.3% during July-December of the current fiscal year.
Import growth has been falling, but at a considerably slower rate than exports (its growth...

Other Papers Like Monetory Policy

Regretful Decisions Essay

930 words - 4 pages Regretful Decisions There are many individuals in a child’s life that helps mold them into a well-rounded adult. In most cases, this guidance comes from the child’s parents or other older, but in Sonny’s case, this guidance was expected from his older brother. In the short narrative, Sonny’s Blues, Sonny’s life was adversely affected by the decisions that his older brother made. The decisions that his brother made include leaving Sonny to stay

Jail Responsibilities Essay

589 words - 3 pages not the least”. They should also avoid misleading expressions (euphemisms) such as “meet our Creator” which means death and “Policy of Disinformation” which means lying to the public. Weak phrases should be avoided also. Weak phrases are ones such as; “wealthy business person”, “Carrying a child” and “one year old boy”. Instead, what can be used are phrases such as “tycoon”, “pregnant” and “one year of age boy”. Police officers must NEVER

Mgt330

638 words - 3 pages Starbucks Nefertiti Wright Sangita Patel October 15, 2012 STARBUCKS 2 STARBUCKS - 1 - [no notes on this page]I. Job description a. Baristas II. Job specifications a. Duties III. Form of departmentalization STARBUCKS 3 Starbucks Starbucks have been named in the 100 best companies to work for. Starbucks has many job opportunities for people, which require the right job specifications. The employees create uplifting experience

Fight Club

917 words - 4 pages Fight Club is a story of the narrator’s struggle to gain control over his life. He is in search for an identity in the form of manhood. His masculinity is so repressed because of the absence of a father figure in his life. Because of this he creates Tyler, his alternate personality. Tyler is nothing like anyone the narrator has met, he is self assured and completely free. The narrators alternate personality Tyler Durden is the ultimate alpha-male

The Powers Of The Health And Safety Representative

254 words - 2 pages The Powers of the Health and Safety Representative A health and safety representative has the power to: Identify Workplace Hazards The health and safety representative has the power to identify workplace hazards. This power is usually exercised by conducting workplace inspections. Obtain Information from the Employer The health and safety representative is entitled to the same information available to a joint committee member. Under the Act

Lesson Plan

6476 words - 26 pages QWERTYUIOP by Vivien Alcock Table of Contents Introduction About Short Stories The Writer Synopsis Elements Activities Beyond The Text Assessment Answer Key Glossary Panel of Writers [pic] SHORT STORY Welcome to the World of Literature and to Short Stories! We hope you will enjoy working with this guidebook, which has been specially designed to help you prepare your students enjoy the Literature

Management

1227 words - 5 pages Coca-Cola Global Business and Marketing Strategy Introduction As domestic markets mature, it is becoming more and more fashionable for organisations to seek growth through opportunities in foreign countries. Faster communication, new technologies and improved transport links are making international markets more accessible and businesses pursuing a global position can experience an upsurge in brand awareness and cost effectiveness. Global

Facing Poverty With A Rich Girl's Habit

783 words - 4 pages Facing poverty with a rich girl’s habit Adele Strader Professor Chryst English Composition October 22, 2012 Facing poverty with a rich girl’s habit was written by Suki Kim and published in the New York Times on November 21, 2004. The most important point that Suki want to make was that (1) what we have in life can be taken away in an instant (2) do not go bankrupt in South Korea (3) that a person must adapt and endure

3-4-50 Paper

572 words - 3 pages -4-50 paperLack of exercise is a key contributor to disease and death among many people in the United States, regardless of age. It is a well-known fact that exercise results in a healthier lifestyle. Along with tobacco use and poor nutrition, lack of exercise is one of the main issues that people have which leads to high blood pressure, obesity, and other serious health problems. According to a study by UCSD School of Medicine and SDSU

Capitalism

836 words - 4 pages Miguel Beatrice Capitalism is an economic system in which private individuals and business firms carry out production and exchange of goods and services through complex transactions involved in prices and markets. By extension called capitalist higher social class of this economic system ("bourgeoisie"), or to the common form would the individual interests of capital owners in both companies, shareholders and patterns, also called capitalism

Sociology

1177 words - 5 pages tracking homeless people overtime. This is very essential for understanding the root of the problem and to provide an assessed policy and specific interventions. Homelessness-like other extreme social problems- often develop gradually over time and from extreme situations. These extreme situations could be violence from parents, institutionalization, prostitution, drug and alcohol abuse, emotional or psychological problems, depression, or loss of

Related Essays

Prospects And Challenge Of Nepalese Debt Market

2827 words - 12 pages Markets: transparency, iquidity, efficiency. Association of British Insurers, European High Yield Association, International Capital Market Association, Investment Management Association. 90-98 Goswell Road, London: Centre for Economic Policy Research. Luengnaruemitchai, P. a. (2005). An Anatomy of Corporate Bond Markets: Growing Pains and knowledge Gains. IMF Working Paper International Capital Markets, WP/05/(152). Natalia, R. (2014). On the value

Lafarge S.A Essay

2924 words - 12 pages an instrumental value that explains the tendency to provide for the needs of others. Welfare is also somewhat linked to family security too. Helpful as a value also manifests in corporate social responsibility. In support of these values, Laszlo & Myers(2006) in reference to Lafarge stated in their article as thus “ it approved an HIV/AIDS policy with the help of ZHABS, the comments of employees and partner organizations and Integrated

Finance Essay

665 words - 3 pages Financial statements are the most common tool used for making business decisions. They consist of the balance sheet, income statement and statement of cash flows. The analysis tools used affect all aspects of a company not just a few. A systematic review of the resources a company used to achieve its mission is cost control. Cash flow should be kept at necessary levels for operations is one of the major benefits of cost control. It is a very

Analysis Of Operation Blue Star And Its Effects On The Gandhi Dynasty

934 words - 4 pages The period of time including and following Operation Blue star is considered a dark time in India and black spot in Indian history. It is a time Indian would rather forget, yet still to this day debate about. Was Indihar Gandhi correct in instating operation Blue Star, inflicting damage to the Golden temple, and being responsible for the killing of anywhere from 492 (official reports) to 1500 (estimates run as high as) civilians, which lead to an