Two bad ideas in the BD newspapers today:
1. Public Health Engineering Department announces eviction drive in the slums. Talk about misplaced priorities, especially in the middle of the flooding season.
2. This is just unconscionable under a government headed by an economist and former head of Bangladesh Bank himself. BB Bank fixes 12% interest for import of all essentials. New Age reports:
The central bank on Tuesday fixed the interest rate for import financing of essential commodities at 12 per cent to ensure adequate supply and contain inflation, according to a circular.
It’s going to be able to do neither. In fact, rationing credit in this way will ensure reduced supply and increased inflation - the exact opposite of the intended effect.
Note to Bangladesh Bank - as well as to Bangladeshi bureaucrats and army types everywhere who are pre-disposed to think like central planners from the 70’s: Stop messing around with setting prices. If you want to subsidize stuff, subsidize stuff. But stop messing around with setting prices. It never works.

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