Amar Paper

Chapter 5 fiscal Policy Stance Going Forward Monetary policy in Bangladesh is a key driver of diverseness in economic performance because it aims to hold expenditure stability through which it influences the levels of output and employment, and hence the rate of economic growth. Moreover, the fiscal policy could become a strong determinant of the report of output and employment. The concern of monetary policy in Bangladesh is, therefore, both(prenominal) macroeconomic including price stability as well as growth implications of these policies. The Bangladesh Bank (BB) formulates its monetary policy with the aim to livelihood the highest sustainable output growth along with maintaining price stability. The monetary policy positioning therefore seeks to contribute to the countrys poverty reduction agenda, especially through its contribution to growthaccommodating and growth-augmenting policies, raise to private sector development, influence on the allocation of resources, and facilitatory regulations governing international capital flows. In club to ensure transparency and accountability, BB has adopted the policy of announcing its monetary policy stance through Monetary Policy Statement (MPS) since January 2006 on a bi-annual basis.

45 The fourth MPS, providing the monetary stance that BB would pursue during the first-half (JulyDecember 2007) of FY08, was announced in July 2007 taking into account the performance of the real and external sectors, and young monetary developments. The design of the monetary stance was built near providing support to the success of the governing bodys poverty-reducing development schema through four major channels: (i) providing support to the Governments fiscal policy stance; (ii) ensuring reasonable price stability favorable to high growth; (iii) helping arouse the balance of payments and the real exchange rate; and (iv) supporting meliorate resource allocation across the economy by providing nice credit to targeted sectors (e.g. SMEs) and... If you want to get a full essay, order it on our website: Orderessay

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