The economy of Bangladesh has been suffering from a double-digit inflation. A
shortage of oil production or energy crisis world-wide, increase in energy prices
and cost-of production in combination with a demand-pull inflation from
expansionary economic policies have caused a persistent inflation. Altogether
these have created a supply-side problem by decreasing the productivity. The
situation of Bangladesh has been aggravated due to political problems and effort of
minimizing corruption and a lack of confidence in business and manufacturing. It
is hard to assume that we can ever get back to the single digit inflation. It is almost
clear that we have to live with this double-digit inflation. We must find out the
avenue how to increase output and income, aggregate production and supply of
goods and services in an effort to fight the inflation.

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