Bhattacharya, DebapriyaKhan, Towfiqul IslamRabbi, Md Mursalin Hossain2022-08-312022-08-312021-12http://hdl.handle.net/10625/61479https://cpd.org.bd/publication/covid-19-and-bangladesh-macroeconomic-impact-and-policy-choices/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.text/htmlenCOVID-19ECONOMIC IMPLICATIONSMACROECONOMICSFISCAL POLICYBANGLADESHSOUTH ASIAWorking Paper