Introduction to Macroeconomics with Applications ot Bangladesh Economy.pdf

This preview shows page 1 - 4 out of 295 pages.

INTRODUCTION TOMACROECONOMICS[With Application toBangladesh Economy]Kazi IqbalAmin Bin Hasib
Introduction to Macroeconomics [With Application to Bangladesh Economy]iiToOur colleagues of General Economics Division (GED) and Support toSustainable and Inclusive Planning (SSIP) project, UNDP
Introduction to Macroeconomics [With Application to Bangladesh Economy]iiiPREFACEThis textbook is an output of the ‘Support to Sustainable and Inclusive Planning (SSIP)’projectof the General Economics Division (GED), Planning Commission, GoB, funded by UNDP-Bangladesh. One of the objectives of this project is to expand the capacity of the publicplanners so that the planners have the basic understanding on how an economy works,particularly a developing economy like Bangladesh. With better understanding of theeconomy and the public policies, planners will be able to analyze the economic issues withgreater rigor and confidence and this will be reflected in crafting national policy documents.With this broad goal in mind, the Senior Economist of the SSIP project Dr. Kazi Iqbal startedteaching a course on the principles of macroeconomics to the officials from General EconomicsDivision in 2014-15.Amin Bin Hasib provided excellent research support and helped addflesh to each chapter. A. Z. M. Saleh provided valuable editorial support. This textbook is thecollation of the expanded version of the class notes prepared for the course taught at GED.What makes this textbook unique is that it is written to understand the economy andmacroeconomic policies of Bangladesh while maintaining the standard of the undergraduatelevel textbook on the principles of macroeconomics. Most of the examples and relevant issuesare drawn from Bangladesh economy. Given the broad scope and importance of the issues,two chapterschapter 4 and chapter 9 are fully dedicated to review the banking sector andfiscal policies of Bangladesh respectively, after explaining the relevant concepts and issues. Aseparate chapter (chapter 5) has been written on stock price bubble and burst with referenceto 1996 and 2010-11 stock market debacles of Bangladesh. We believe that this issue should beincluded in the introductory text book of macroeconomics in Bangladesh and should becomea standard common knowledge of the mass people. Once we become familiar with the processhow a bubble generally forms and how it bursts, it will help us to spot the next one and avoidbecoming an ignorant participant in it.We know that all macroeconomic variables are linked through both accounting andbehavioral relationships. We think introductory macroeconomics should offer thepedagogical tool to understand the accounting relationships among macro variables whileappreciating the behavioral relationships among them. All major actors in the economy -households, businesses, government, commercial banks and central bank are connectedthrough their balance sheets (accounting relationships) and action of one actor affects the

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 295 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Summer
Professor
N/A

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture