COVID-19 and Bangladesh : macroeconomic impacts and policy choices
Date
2021-12
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Publisher
Centre for Policy Dialogue (CPD)
Abstract
Bangladesh, like most of the countries in the world, had to restrict mobility and economic activities to tackle the spread of the COVID-19 virus. Indeed, the pandemic has been exerting pressure on the economy through both global and domestic shocks leading to a detrimental impact on major macroeconomic correlates of the country. The present study urges that Bangladesh will need to pursue a countercyclical fiscal policy stance in the face of deceleration in aggregate demand. The study further maintains that greater fiscal resources should be directed towards those people, households and enterprises having a higher propensity to consume and invest. From this perspective, the study strongly advocates for direct cash transfers, food support, and enhanced public expenditures in health and education rather than a general increase in public expenditures and subsidised credit flow.
Description
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Working Paper
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Keywords
COVID-19, ECONOMIC IMPLICATIONS, MACROECONOMICS, FISCAL POLICY, BANGLADESH, SOUTH ASIA