Monetary Policy Should Aim To Boost Production

Abstract

This article by Prof. Dr. M. Azizur Rahman discusses the strategic role of monetary policy in fostering economic growth and production in Bangladesh. The author argues that the primary objective of monetary policy should be to enhance GDP, create employment, and ensure equitable income distribution across different geographical regions. He critiques recent contractionary trends, suggesting that current inflation is often driven by market syndicates and a lack of coordination between fiscal and monetary policies rather than just an increased money supply. The text advocates for an expansionary monetary policy to lower the costs of goods and services through increased competition and supply. Furthermore, the author emphasizes the need for government intervention to break business syndicates and improve industrial infrastructure to facilitate a more productive economic environment.