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I Am Trying.


Submitted By Anupom
Words 3215
Pages 13
Objectives of the paper:
With giving an overview of what the monetary policy really is and narrating how the central bank formulates the monetary policies and takes the necessary steps for its implementation in Bangladesh, this paper targets to analyze the impact of monetary policy on the inflationary situation.
The study depends on
I. Extensive literature review of external sources on central banks on formulation and implementation ofmonetary policy for the country
II. Publications of Bangladesh Bank
Scope of the paper: 1. First of all, monetary policy is a deep sea to swim through. Though Bangladesh practices and implements a limited number of instruments, the mix is always complex to grab the main idea behind it. Extensive analysis of the mix is beyond the scope of the paper. 2. Framing of indices of central bank policies is beyond the limit of this paper. 3. Structured data is hard to collect from the departments of Bangladesh Bank, so complex calculations and data analysis is deliberately avoided.
Bangladesh Bank (BB):
The central bank of the country, was established as a corporate body by the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16 December, 1971 by acquiring the liabilities and assets of erstwhile State bank of Pakistan in East Pakistan. Bangladesh Bank is the central bank of the country | |
There is a cross departmental committee on monetary policy (MPD) headed by a deputy governor, which includes the officials of the core departments of the bank for monitoringof the money market and exchange rate operations in the short term.
In economics, inflation is the rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises,each unit of currency buys fewer goods and services. Consequently, inflation also

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