What is it about?
A systematic review was conducted to investigate the causes and consequences of price hikes in Bangladesh, with a focus on policy implications. Through a comprehensive search of electronic databases and application of inclusion and exclusion criteria, relevant studies were identified for analysis. The study revealed that the causes of price hikes in Bangladesh include factors such as global oil prices, government policies, supply chain inefficiencies, and lack of competition. These factors collectively contribute to the inflationary pressures experienced in the country. Consequences of price hikes were found to be substantial, encompassing decreased purchasing power, reduced living standards, increased poverty rates, and adverse impacts on investment and employment opportunities. Both household welfare and businesses relying on imported raw materials or energy sources suffered as a result. In light of these findings, the author emphasizes the importance of implementing effective policy measures to address the challenges posed by price hikes. Recommendations include strategies to control inflation, promote competition, enhance supply chain efficiency, and manage government spending. By incorporating these policy implications into decision-making processes, Bangladesh stands to mitigate the adverse effects of price hikes, thereby fostering economic stability and improving overall wellbeing.
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Why is it important?
Understanding the causes and consequences of price hikes in Bangladesh is crucial for several reasons: Economic Stability: Price hikes can destabilize the economy by reducing purchasing power, increasing poverty rates, and negatively impacting businesses. Identifying the underlying causes helps policymakers develop targeted interventions to stabilize prices and ensure economic growth. Poverty Alleviation: Price hikes often disproportionately affect low-income households, exacerbating poverty levels. By understanding the factors driving price increases, policymakers can implement measures to protect vulnerable populations and alleviate poverty. Business Resilience: Businesses relying on imported raw materials or energy are particularly vulnerable to price hikes. Recognizing the implications of price increases enables policymakers to support affected industries and enhance their resilience to economic shocks. Policy Formulation: Knowledge of the causes and consequences of price hikes informs the development of effective policy responses. Policymakers can tailor interventions to address specific challenges such as inflation control, supply chain efficiency, and competition promotion. Social Welfare: Price hikes impact various aspects of daily life, including food security, healthcare, and education. Understanding these effects helps policymakers prioritize social welfare initiatives and allocate resources more effectively. Sustainable Development: Sustainable economic development requires stable prices and equitable distribution of resources. Addressing the root causes of price hikes promotes sustainable growth and improves overall societal wellbeing.
Perspectives
From a personal perspective, this publication provides valuable insights into the complex dynamics of price hikes in Bangladesh and their far-reaching implications. As someone interested in economics and policy, I find it particularly enlightening to see the multifaceted factors contributing to inflationary pressures in the country, ranging from global influences like oil prices to local issues such as supply chain inefficiencies and government policies. Moreover, the emphasis on the consequences of price hikes, especially their impact on vulnerable populations and businesses, resonates deeply. It underscores the urgent need for targeted interventions to mitigate these adverse effects and promote economic stability and social welfare.
Md Mehedi Hasan Emon
American International University Bangladesh
Read the Original
This page is a summary of: A Systematic Review of the Causes and Consequences of Price Hikes in Bangladesh, Review of Business and Economics Studies, July 2023, Financial University under the Government of the Russian Federation,
DOI: 10.26794/2308-944x-2023-11-2-49-58.
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