Monetary Policy and Stabilization Problems in Bangladesh: Some Current Issues

A.N.M. Wahid
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A.N.M. Wahid: School of Business, Tennessee State University, Nashville, Tennessee

Economic Analysis and Policy, 1993, vol. 23, issue 1, 59-69

Abstract: Bangladesh has been subject to balance of payments difficulties since its inception. The government first tried to improve this situation with traditional monetary measures but experienced disappointing results. Among other reasons, this failure can be attributed to the fact that the balance of payments problems in Bangladesh are, in general, the consequence of rigidities of demand and supply in various factor and product markets. In line with this assessment, the World Bank and the International Monetary Fund persuaded Bangladesh to embark upon a medium-term, comprehensive Structural Adjustment Facility plan in the mid-1980s. This paper is a critical evaluation of this plan and Bangladesh’s recent macroeconomic experiences.

Date: 1993
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