Inflation Unemplyment Growth

We are very much enthusiastic about our presentation. We are really happy to have such 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 ttractive, 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 Representative, Group-“Epimetheus” Department of Finance Jagannath University,Dhaka. First of all we would like to thank the Almighty for giving us the strength, and he 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 eople 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 s 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 1. Rational of the study 1. 3 Objective of the study 1. 4 Scope of the study 1. 5 Methodology of the study 1. 6 Limitations of the study Body of the term paper Chapter- 02 Inflation Effect on the economy Causes behind inflation Historical trend analysis Limitation of economic system & needed 1 0 step Unemployment rate 11 Effect of u nemployment 12 Causes behind unemployment 14 Aftermath Of unemployment 17 Needed steps 18 Growth Trend 19 Chapter-03 Relationship with inflation 22 Historical trend & needed step 23 Fi ndings of the study 24 Conclusion 25

Bibliography Contents of Tables, Graphs Page No Trend of inflation Trend of unemployment 16 Trend of growth trend 21 “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”-lLO. 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 orks in our country.

Rationale of the study The case study is assigned by our course teacher Saud Ahmed as a part of our “Macro Economics” course. The topic Of our case study is “A case Study Of Bangladesh: Inflation, unemployment, and Growth Trend”. By conducting this study we can enhance our knowledge and skill to apply various research methods in professional life on higher educational life. The report has given us a chance to raise our quality in developing research instrument and its applications. By doing so, we can boost our acceptability in job market and develop our real life knowledge.

Objective of the Case Study Primary objective The main objective of the study is to know how the factors of macroeconomics work 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 ase 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 can’t be focused in depth. Website in different organization of Bangladesh contains poor information.

Recent data and Information on different activities was unavailable. Chapter-2 Definition 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 ncomes, eroding living standards and adding, in many ways, to life’s 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 won’t buy as much today as you could yesterday”. Definition of Inflation rate (consumer prices) This entry furnishes the annual percent change in consumer prices compared with the previous year’s consumer prices. The inflation rate is the percentage rate of change of a price index over time.

Effect of Inflation 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 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 nd 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 o maneuver, MundelI-Tobin effect, Instability with Deflation etc.

In developing countries, in contrast, inflation is not a purely monetary phenomenon, but is often linked with fiscal imbalances and deficiencies in sound internal economic policies. Beside, factors typically related to fiscal imbalances such as higher money growth and exchange rate depreciation arising from a balance of payments crisis dominate the inflation process in developing countries. There were different schools of thought as to the causes of inflation. Most can be divided into two broad areas: 1. Quality theories Of inflation 2. Quantity theories of inflation.