A Case Study On Economic Indicators
A Case Study On Economic Indicators
A Case Study On Economic Indicators
Fin :
Macroeconomics
Department of
Finance,
Submitted to
Saud Ahmed
Course Instructor/ Lecturer,
Faculty
Business
Studies
of
Jagannath
University,
Dhaka
Submitted by
Representative
of the group
Epimetheus
rd
BBA 3 Batch
Department of
Finance,
Faculty
Business
Studies
of
Serial No:
Roll Number
01
091597
02
091633
03
Mamunur Rashid
07882747
04
091615
05
Sharjil Ahmed
091623
06
091636
07
Protiva Talukder
091602
08
091590
09
091613
Contact
Saud Ahmed,
Lecturer,
Department of Finance,
Jagannath University, Dhaka.
Sub: Thanks giving letter to the respective faculty member.
Sir,
We are the student of Department of Finance (3 rd batch) of Jagannath University, Dhaka & also from
the group named Epimetheus. We are very much enthusiastic about our presentation. We are
really happy to have such a presentation of challenging and interesting like this presentation & also
thanks to you for making us worthy for corporate. Our presentation topic is A case study of
Bangladesh- Inflation, Unemployment & Growth trend. We have learned many things from
this topic which will help us in future to conduct as an analyst of economics. There were some
obstacles we have faced at the time of collecting data about our topic. But we have overcome all the
obstacles by the endeavor effort by each member of our group and tried our best to give an overview
of our topic.
We the group Epimetheus tried our best to make this presentation attractive, impeccable,
interesting, informative and enjoyable by the help of electronic and print media in association with our
honorable teacher, mentor, counselor, instructor and advocate Saud Ahmed. We are really grateful to
him. We had limitations at the time preparing presentation. So mistakes may occur in our
demonstration of our presentation. We hope that, you will exempt our mistakes .
Thanking in anticipation,
Yours Fidel,
Group-Epimetheus
BBA 3rd Batch
Department of Finance
Jagannath University,Dhaka.
First of all we would like to thank the Almighty for giving us the strength, and the aptitude to
complete this report within due time. We are deeply indebted to our course teacher, mentor,
and counselor, Saud Ahmed for assigning us such an interesting topic named A cause
study of Bangladesh- Inflation, Unemployment and Growth Trend. We also express the
depth of my appreciation to our honorable course teacher for his suggestion and guidelines,
which helped us in completing this report.
Inflation, unemployment and growth trend are the major factor of macro economics. Losing
the purchasing power and increasing the cost of production indicates the high rate of
inflation. Unemployment occurs when people are without jobs and they have actively looked
for work within the past four weeks. The trend of the growth of the real GDP is called Growth
Trend. Economic growth is primarily driven by improvements in productivity. However,
inflation & growth rate have both positive & negative relationship depending on situation.
Moreover, inflation and unemployment have a negative relationship. All the factors are
interrelated and at the time of analyzing one must consider each and every factor with equal
consideration. If we analyze the economical condition of our country it is clear that inflation
is higher in recent years comparing with past decade. Growth trend is upward till the inflation
rate is 7 percent. After that the trend gets downward. At the same time unemployment rate is
inverse all the time with inflation rate maintaining contractionary & expansionary policy.
Inflation fluctuates all the time because of the fluctuation of the money supply. But in recent
years, we came to know that international affairs are influencing to increase the inflation rate.
Consistent budget deficit and exchange rate deteriorate the economic growth which directly
relates with unemployment & inflation.
NAME
Page no
Executive Summary
Introduction
Chapter- 01
1.1 Introduction
01
01
02
02
02
02
Chapter- 02
Inflation
03
03
05
07
10
Unemployment rate
11
Effect of unemployment
12
14
Aftermath of unemployment
17
Needed steps
18
Growth Trend
19
Chapter-03
22
23
24
Conclusion
25
Bibliography
25
Page No
Trend of inflation
07
Trend of unemployment
16
21
Chapter- 01
Introduction
Too much money in circulation causes the money to lose value-this is the true meaning of
inflation.
Unemployment occurs when people are without jobs and they have actively looked for work
within the past four weeks-ILO.
The trend of the growth of the real GDP is called Growth Trend. Economic growth is
primarily driven by improvements in productivity.
In this report we tried to show that how inflation, unemployment, growth trend are related
each other & how important it is for economy & how it works in our country.
Secondary objective:
The case study has the following objectives:
To know about Inflation, unemployment, Growth Trend.
How inflation, Unemployment and Growth Trend fluctuate.
Relationship among the inflation, unemployment and growth trend.
Causes behind the inflation, unemployment and growth trend.
Scope
There were huge scopes to work in the area of this Case Study. Considering the dead line, and
exposure of the paper has been wide-ranging. The study A case Study of Bangladesh:
Inflation, Unemployment, and Growth Trend has covered overall scenario of
macroeconomics situation of Bangladesh. It has measured the living standard of mass people.
We have a chance to work on the economic variable used in modern economic world. By
doing the assignment, we are able to know that the importance of inflation, unemployment &
growth trend to assess how the people of the country living in. In the case study we have
showed how the above variables are inter related on each other.
Methodology
We have used the concept of the course, information of the case study.
Sources of Data
Here the secondary sources of information were used. The secondary sources are:
Books.
Website.
Limitations
While conducting the report on A case Study of Bangladesh: Inflation, Unemployment,
and Growth Trend, some limitations were yet present there:
Because of time shortage many related area cant be focused in depth.
Website in different organization of Bangladesh contains poor information.
Recent data and information on different activities was unavailable.
Chapter-2
Inflation
Definition
Too much money in circulation causes the money to lose value-this is the true meaning of
inflation. The popular opinion about the costs of inflation is that inflation makes everyone
worse off by reducing the purchasing power of incomes, eroding living standards and adding,
in many ways, to lifes uncertainties.
In economics, inflation is a rise in the general level of prices of goods and services in an
economy over a period of time. Inflation refers to a rise in prices that causes the purchasing
power of a nation to fall. Inflation is a normal economic development as long as the annual
percentage remains low; once the percentage rises over a pre-determined level, it is
considered an inflation crisis.
In another word Inflation means that your money wont buy as much today as you could
yesterday.
General
Negative
Positive
General Effect
An increase in the general level of prices implies a decrease in the purchasing power of the
currency. That is, when the general level of prices rises, each monetary unit buys fewer goods
and services. Increases in the price level (inflation) erode the real value of money (the
functional currency) and other items with an underlying monetary nature (e.g. loans and
bonds). For example if one takes a loan where the stated interest rate is 6% and the inflation
rate is at 3%, the real interest rate that one are paying for the loan is 3%. It would also hold
true that if one had a loan at a fixed interest rate of 6% and the inflation rate jumped to 20%
one would have a real interest rate of -14%.
Negative Effect
High or unpredictable inflation rates are regarded as harmful to an overall economy. They add
inefficiencies in the market, and make it difficult for companies to budget or plan longterm.
Inflation can act as a drag on productivity as companies are forced to shift resources away
from products and services in order to focus on profit and losses from currency inflation.
Uncertainty about the future purchasing power of money discourages investment and saving
and inflation can impose hidden tax increases.
In case of international trade, Higher inflation in one economy than another will cause the
first economy's exports to become more expensive and affect the balance of trade
Positive Effect
Positive effects include ensuring central banks can adjust nominal interest rates (intended to
mitigate recessions), and encouraging investment in non-monetary capital projects. It puts
impact on Labor-market adjustments, Room to maneuver, Mundell-Tobin effect, Instability
with Deflation etc.
free!!!!!