Assignment on Money Supply & Inflation of Bangladesh

Submitted To:
Name: Aditi Dev
Senior Lecturer, Department of Business Administration
Metropolitan University

Submitted By:
Group Name: Fast & Furious
BBA 30th Batch, Section B
 Submission Date: 15-12-2016
Money Supply:
Money supply is the entire stock of currency and other liquid instruments
circulating in a country's economy as of a particular time. Also referred to as
money stock, money supply includes safe assets, such as cash, coins, and balances
held in checking and savings accounts that businesses and individuals can use to
make payments or hold as short-term investments.

Bangladesh Money Supply M0:

Money Supply M0 in Bangladesh increased to 1221.24 BDT Billion in August from
1196.63 BDT Billion in July of 2016. Money Supply M0 in Bangladesh averaged 308.20
BDT Billion from 1990 until 2016, reaching an all-time high of 1323.05 BDT Billion in June
of 2016 and a record low of 34.38 BDT Billion in November of 1990.
Bangladesh Money Supply M1:
Money Supply M1 in Bangladesh increased to 1983635 BDT Million in August from
1969395 BDT Million in July of 2016. Money Supply M1 in Bangladesh averaged
323138.44 BDT Million from 1974 until 2016, reaching an all-time high of
2124307.00 BDT Million in June of 2016 and a record low of 6267.00 BDT Million in
April of 1975.
Bangladesh Money Supply M2:
Money Supply M2 in Bangladesh increased to 9228.83 BDT Billion in August from
9133.05 BDT Billion in July of 2016. Money Supply M2 in Bangladesh averaged
2245.69 BDT Billion from 1990 until 2016, reaching an all-time high of 9228.83 BDT
Billion in August of 2016 and a record low of 207.37 BDT Billion in March of 1990.
Bangladesh Money Supply M3:
Money Supply M3 in Bangladesh increased to 11047700 BDT Million in September from
10921200 BDT Million in August of 2016. Money Supply M3 in Bangladesh
averaged 3702526.93 BDT Million from 1999 until 2016, reaching an all-time high
of 11047700.00 BDT Million in September of 2016 and a record low of 732982.00
BDT Million in February of 1999.
Inflation:
Inflation is the rate at which the general level of prices for goods and services is
rising and, consequently, the purchasing power of currency is falling. Central
banks attempt to limit inflation, and avoid deflation, in order to keep
the economy running smoothly.

Bangladesh Inflation Rate 2001-2008:

 MFD FD M2
Year CPI (Million IR NER (TK) (Million WPI (Million
TK) TK) TK)

2001 126.72 12931.05 15.8 53.95 12931.05 1726.0 87174.0

2002 130.26 12840.4 16 57.43 12840.4 1730.0 98676.0

2003 135.97 12624.36 16 57.9 12624.36 1822.0 113994.0

2004 143.9 13984.74 14.8 58.94 13984.74 1889.0 129721.0

2005 153.24 16311.24 14 61.39 16311.24 1954.0 151446.5

2006 164.21 13719.09 14 67.08 13719.09 2021.0 180674.0

2007 176.04 14960 16 69.03 14960 2080.0 211504.0

2008 193.54 33840.84 16.4 68.6 33840.84 2150.0 248790.0