DEV 300: Economics & Development

Fall 2012

Group Assignment
Topic: State of the Economy 1. Introducing your assignment To prepare a policy note on Bangladesh economy analyzing various macroeconomic variables 2. Overview Macroeconomics is concerned with four sectors such as real sector, fiscal sector, monetary sector, and external sector. This assignment attempts to explain developments in the broad economic aggregates in the four sectors and to guide policymakers in their pursuit of economic objectives. A through analysis of economic development is important for the design of economic policies. 3. Group Formation This class consists of 21 participants. We need to constitute four groups to analyze four sectors of the economy. 4. Submission date The last date of submission of the note (soft copy) is on December 13. On the presentation day (TBD), each group will present their findings before the class followed by question and answer session. 5. Identification of Macroeconomic variable (a) Real Sector: In analyzing real sector of the economy, the most important issues to consider might include the following: The rate of economic growth Growth in various important sectors such as Agriculture, Industry, Health, Education, Energy, Services, etc. Domestic and National Savings Public and Private Investment The rate of Inflation (b) Fiscal Sector: In analyzing fiscal sector of the economy, the most important issues to consider might include the following: The level and composition of revenue The level and composition of expenditure (Development & Nondevelopment) The size of the overall government deficit Financing the deficit (c) Monetary Sector: In analyzing monetary sector of the economy, the most important issues to consider might include the following: Growth of money supply Growth in credit to the private sector

DEV 300: Economics & Development

Fall 2012

Credit to the government sector Net foreign assets of BB Net domestic assets of BB

(d) External Sector: In analyzing external sector of the economy, the most important issues to consider might include the following: Export Import Trade balance Remittances Current Account balance Foreign Exchange reserve 6. Activity You need to analyze the past performance of the last three years say FY 2011-12, 2010-11, and FY 2009-10. In doing so, you need to perform the following task: Data collection on various macroeconomic aggregates of various sectors Analyze data Find out the trend Cross-sectoral analysis Identify the main problem Policy suggestions 7. Source of Data The following websites may be very helpful for your research: www.mof.gov.bd www.bangladesh-bank.org www.bbs.gov.bd www.imf.org www.cpd-bangladesh.org

Group Distribution Real Sector

Bonhi, Porimol, Rubiya

Monetary Sector

Fiscal Sector

External Sector
Farhana, Gulshan, Mashur

Habib, Wakkeya, Sadia, Ahsan, Saquib, Junayed, Hajra, Mousumee, Khairun Zahurul, Merryna, Mandira, Nahar, Sumaiya Abdul Alim Pushpita, Alam