Increase productivity contain inflation

Abstract

Dr. Rahman addresses the economic depression in Bangladesh, arguing that expansionary economic policy is vital for increasing production and decreasing unemployment. However, he notes that this must be paired with strategies to contain inflation, specifically by increasing the supply of goods and reducing average production costs. The article explores the role of exchange rates, suggesting that enhancing the value of the national currency can help prevent inflation in an import oriented country. The author emphasizes that a successful "mixed and coordinating economy" requires the joint efforts of expansionary monetary and fiscal policies to regain lost purchasing power and ensure that productivity gains keep pace with increased demand.