ISSN: 1019-7044
Volume 50, No. 1, June 2025
Published: November 2025
Pages: 256-286
Doi: http://doi.org/10.64204/BP1019-7044/50(1)/A20257
Sakib Bin Amin, Mainul Islam Chowdhury, Javed Hossain
This paper assesses the efficacy of fiscal and monetary policies in the context of the Bangladeshi economy, which is currently experiencing significant changes in the aftermath of its recent regime shift. The study employs a closed economy HANK-DSGE framework to analyze these policies. The results indicate that both fiscal and monetary measures stimulate growth through demand- and supply-side channels, though monetary policy exerts a stronger influence. We argue for an optimal, coordinated policy mix to reinvigorate the economy while containing inflationary pressures.
JEL Classification: C32, C68, E52, E62
Keywords: HANK-DSGE Model , Fiscal Policy , Monetary Policy , Bangladeshi Economy
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