Thinking Aloud: Volume V, Issue 9: February 1, 2019


This February 2019 issue of Thinking Aloud focuses on “Perspectives on Macroeconomics” and presents articles based on the papers presented at the First SANEM Macroeconomics Workshop held on 19 January 2019 in Dhaka. The first article titled “Bangladesh’s macroeconomic challenges” explores the critical macroeconomic challenges for the Bangladesh economy which include growth acceleration and maintenance, containing inflationary pressure, exchange rate management, maintaining a stable balance-of-payment regime, and pursuing effective monetary and fiscal policies. The second article titled “Rethinking macroeconomic policy: from a neoliberal framework to a development perspective” emphasizes the need for modification of the neoliberal policy framework to reflect developing country circumstances. The third article titled “The Economics of the twin deficits hypothesis” suggests that a positive causal relationship running from budget to current account deficit can be referred to as a mechanism through which a rise in the budget deficit causes a corresponding rise in the current account deficit. The fourth article titled “The effect of exchange rate on the export of Bangladesh: A time series analysis” estimates the short run as well as the long-run effect of the Real Exchange Rate (RER) on real export earnings of Bangladesh using time series data for the period from 1972 to 2016. The fifth article titled “Impact of fiscal and monetary policies on budget deficit in Bangladesh” empirically investigates how budget deficit responds when a combination of monetary and fiscal instruments is being considered in Bangladesh. The sixth article titled “Role of tertiary education on economic growth of Bangladesh: A time series analysis” estimates a conventional growth model while emphasizing the role of gross tertiary enrollment ratio using time series data from 1971 to 2016. The seventh article titled “Does US Federal Funds Rate affect other economies? Evidence from Bangladesh” attempts to evaluate the long-run impact of the change in the United States Federal Funds Rate on Bangladesh interest rate spread using a Vector Error Correction Model. The fourth page covers events that took place in the month of January.

Link: Thinking Aloud: Volume V, Issue 9: February 1, 2019