Expansionary monetary policy not a bad idea

Abstract

The article "Expansionary Monetary Policy Not a Bad Idea" by M. Azizur Rahman argues that under specific economic conditions, such as low inflation and sluggish growth, expansionary monetary measures (e.g., lowering interest rates, increasing money supply) can stimulate Bangladesh’s economy without triggering harmful inflation. The author highlights how controlled monetary easing can boost investment, create jobs, and support sectors like manufacturing and SMEs, particularly during economic downturns. While acknowledging risks like potential asset bubbles, the piece emphasizes that prudent implementation—paired with fiscal discipline—can mitigate downsides. The article concludes that such policies, when data-driven and time-bound, offer a viable tool for revitalizing economic activity while maintaining macroeconomic stability.