This presentation summarizes the key aspects of monetary policy. It introduces monetary policy and its objectives, such as managing the money supply to achieve full employment. It describes the tools central banks use, including interest rates, reserve requirements, and open market operations. It explains how expansionary and contractionary monetary policies work to speed up or slow down an economy by increasing or decreasing the money supply. Specific examples are provided about how monetary policy addresses problems like unemployment and deflation or inflation. The role of Bangladesh Bank in pursuing economic growth, poverty reduction, and inflation targets through its monetary policy is also highlighted.

1. Welcome to our presentation

8. • STORY

9. COURSE NAME :Microeconomics
COURSE CODE :MKT-212
PRESENTATION TOPIC :Monetary Policy
REPRESENTED BY HELLO
DEPT. OF MARKETING
UNIVERSITY OF BARISAL

10. GROUP PROFILE
S.N. Name I.D Remark
01. Ayesha Siddika Ema 16 MKT-001
02. Trina Mistry 16MKT-002
04. Tanzil Zaman 16MKT-004
04. Abir Ahmmed 16MKT-005
05. Arju Akter 16MKT-006
06. Rafiqul Islam 16MKT-008
07. Nourin Zaman 16MKT-068
08. Ayesha Siddika 14MKT061

11. The FED

12. European central bank or
ECB

16. Monetary Policy
Monetary policy is the
term used by economists
to describe ways of
managing the supply of
money in an economy.

17. Monetary Policy
According to Macconal:
"Changing the money supply to
assist the economy to achieve
a full employment "

18. Use of Monetary Policy
Central Bank can use three tools
to achieve its monetary policy
goals: the discount rate, reserve
requirements, and open market
operations. All three affect the
amount of funds in the banking
system. The discount rate is the
interest rate Reserve Banks
charge commercial banks for
short-term loans.

19. Objectives of Monetary policy
Objectives are classified in two
aspects:
 Developed Countries
 Under Developed
Countries

20. Developed Countries
To have high aggregate demand without inflation
 Eradicate inflationary and deflationary gap
High research / further development Providing assistance to other
countries Gaining monetary control over others

21. Under Developed
Countries
To achieve full employment
To have high efficiency
To have large scale of
resource mobilization
To increase exports
To have high investment
To provide price and
exchange stability
To have efficient allocation
and utilization of resources

22. Interest Rate
• An interest rate is the price of
borrowing money.
• When banks lend money, they expect
to be repaid the amount they rent,
which is called the principle and a
percentage of the principle to cover
inflation and to make some profit.

23. Car loans

24. Student Loans

25. Home Loans

26. Business loans

27. Interest Rate Effect

28. Money Supply.
• Bank manipulates interest rate by changing the money supply.
• If the bank increases the money supply, there'll be plenty of
money for banks to loan out.
• Banks will be forced to lower interest rates because they are
gonna have to complete or else no ones gonna borrow from
them.
• And decrease in money supply has the opposite effect.

29. Expansionary Monetary Policy
if the central bank
wants to speed up
the economy, they
can increase the
money supply with
will decrease
interest rate, and
lead to more
borrowing and
spending. that's
called expansionary
monetary policy.

30. Contractionary monetary policy
if the central bank
wants to slow
down the economy,
they decrease the
money supply -
less money,
available will
increase interest
rates and decrease
spending. that's
called
contractionary
monetary policy.

31. Real life example

32. Problems :
unemployment
and deflation.
Remedy :
Induce an expansion
in the supply of
money, and
therefore expending,
by reducing the
interest rate.
Means:
Buy bonds
in the open
market.
Expansionary monetary policy

33. Problemss:
Inflation
Remedy :
Induce a
contraction in the
supply of money,
and therefore
expending
Means: Sell
Bond in the
open
market
Contractionary monetary policy

34. Healthy banking system
There Are Two Things That Keep The Banking System
Healthy
1. Confidence
2. Liquidity
When Customers Deposit Money In A Bank, They Need To
Feel Confident They Are Gonna Get Their Money Back.

35. How Central Bank Change Money Supply?

37. Government Bond Or Something Called Bill Is
An IOU Issued By The Government.

38. Bonds

39. Speed Up Or Slow Down Economy.
• Fiscal policy
• Momentary policy.
Fiscal policy which is changing government spending or
taxes and
Momentary policy which is changing the money supply.

40. Fiscal Policy Or
Momentary Policy.
• Which Policy Is The Best For A Country Consider By You?

41. Monetary policy :
Bangladesh Bank
• Monetary Policy Archive.
Bangladesh Bank half yearly
Monetary Policy Statements
outline the monetary policy
stance, designed to support
government's policies and
programs in pursuit of faster
inclusive economic growth and
poverty reduction; while also
maintaining price stability.

42. Economic Growth And
Poverty Reduction
• Bangladesh Bank Said The
Half-yearly Monetary Policy
From July To December 2017
Is Designed To Support The
Government's Policies And
Programs In Pursuit Of Faster
Inclusive Economic Growth
And Poverty Reduction

43. Inflation
• Balancing The Output And
Inflation Risks For The
Economy Over The Next One
Year, The Program Will Target
Monetary Growth Path Aimed
At Keeping Average Inflation
Around 5.5 Percent

44. Exchange Rate
• According to the bank's
statement, the market-based
exchange rate of taka has
responded to the turnaround of
BoP (Balance of Payment)
current account balance from
surplus to deficit in FY17,
depreciating by around 3
percent against U.S. dollar.

45. Monetary policy framework

46. THANK YOU