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Title: Components of the Money Supply Process in Bangladesh: An Analysis

Abstract: This study provides a comprehensive assessment of the components and effectiveness of the money supply process in Bangladesh, with a particular focus on its underlying determinants, trends, and policy implications. The primary objective is to evaluate whether the existing money supply mechanism, as implemented by the Bangladesh Bank, is effective in meeting the country’s macroeconomic objectives of price stability, economic growth, and financial stability. The research adopts a mixed-method approach, integrating both descriptive and econometric analyses. Descriptive statistics and trend analysis are used to examine the historical patterns of monetary aggregates namely the monetary base (H), money multiplier (m), narrow money (M1), and broad money (M2) over the past two decades. The results reveal that the money supply process in Bangladesh exhibits both short-run volatility and long-run stability, with the monetary base and money multiplier jointly influencing the expansion of M2. Co-integration tests confirm the existence of long-term equilibrium relationships among monetary aggregates, while ECM results suggest a moderate speed of adjustment toward equilibrium following shocks. However, structural break analysis indicates that global financial crises, domestic policy shifts, and recent pandemic-related disruptions have caused significant short-term deviations. The findings highlight that although the Bangladesh Bank’s monetary policy framework has been largely effective in steering the long-run trajectory of the money supply, challenges remain in managing short-run fluctuations and in aligning monetary expansion with real economic growth. The study concludes with policy recommendations aimed at enhancing the effectiveness of the money supply process, including improving forecasting models, strengthening monetary transmission mechanisms, and enhancing coordination between monetary and fiscal policy.

By Sabiha Akter
In Volume: 14,Issue: 2
Title: Executive Clemency in South Asia: Scope and Limits of Pardoning Power in SAARC Nations

Abstract: Within the nations of the South Asian Association for Regional Cooperation (SAARC), the Constitutional power of pardon, which has historically been defended as a tool of mercy and remedial justice, has become a site of administrative excess and constitutional tension. Despite being universally vested in the head of state, the region's use of this power often deviates from its humanitarian justification and serves as a politically useful instrument that erodes public trust in criminal justice systems, judicial finality, and equality before the law. The legislative framework enabling executive clemency in SAARC member states-India, Pakistan, Bangladesh, Nepal, Sri Lanka, Bhutan, Maldives, and Afghanistan is examined critically and comparably in this paper. Through a doctrinal analysis of recent and significant case laws such as A.G. Perarivalan v. State of Tamil Nadu, 2022, Bal Krishna Dhungel (Nepal), 2018 and contentious presidential pardons in Sri Lanka and Bangladesh, the study reveals recurring patterns of partisan misuse of mercy powers, arbitrariness, and opacity in jurisdictions lacking significant judicial or statutory constraints. The paper argues that constitutional democracies dedicated to upholding the rule of law, the current deference to executive discretion is normatively untenable. It contends that limited but principled judicial review, combined with procedural protections such as reason-giving, victim engagement, and independent clemency advisory procedures, is required to keep clemency from devolving into an instrument of impunity. The study concludes by suggesting a reform-oriented constitutional framework and regionally harmonized norms for recalibrating executive mercy within the parameters of legality, accountability, and democratic legitimacy.

By Faraha, Sadaf Ansari
In Volume: 14,Issue: 2
Title: Digital Trade and E-commerce Reshaping Global Trade Architecture in the 21st Century

Abstract: The rapid proliferation of digital technologies has fundamentally transformed the global trade landscape, with e-commerce and digital trade emerging as dominant forces reshaping traditional trade architectures. This paper examines the multifaceted impact of digital trade and e-commerce on global trade structures, analyzing key trends, challenges, and policy implications. Through comprehensive analysis of empirical data and theoretical frameworks, we demonstrate how digital platforms have reduced transaction costs, democratized access to international markets, and created new regulatory challenges. Our findings indicate that digital trade now accounts for a significant portion of global GDP, with cross-border e-commerce growing at unprecedented rates. However, this transformation has also highlighted critical issues including digital divides, data governance concerns, and the need for updated international trade frameworks. This research contributes to understanding how digital trade is reconfiguring global value chains and what policy interventions are necessary to ensure inclusive and sustainable growth in the digital economy.

By Pankaj Yadav
In Volume: 14,Issue: 2
Title: The Inflation-Unemployment Trade-Off in Bangladesh: Empirical Insights for Accelerating Progress towards Zero Poverty (SDG 1)

Abstract: This study empirically investigates the inflation-unemployment trade-off in Bangladesh and assesses its implications for achieving Sustainable Development Goal 1 (SDG 1) of zero poverty. High inflation erodes the real income of the poor, while unemployment directly limits earning capabilities, making the interplay between these variables a central determinant of poverty reduction. Using annual time-series data from 1990 to 2024, we employ an Autoregressive Distributed Lag (ARDL) model to test for the existence and stability of a long-run relationship. Our findings confirm a significant short-run trade-off but reveal that this relationship is unstable and weakens in the long run, suggesting that other structural factors dominate. The results indicate that unanticipated inflationary shocks disproportionately harm the poor, and persistent unemployment remains a formidable barrier to inclusive growth. The study concludes that a singular focus on either price stability or employment generation is insufficient for attaining SDG 1. Instead, Bangladesh requires an integrated policy framework that combines prudent monetary policy to control the inflation rate with targeted fiscal measures, investments in human capital, and productive sector diversification to generate new employment opportunities. This holistic approach is essential to effectively manage the trade-off and accelerate progress towards eliminating poverty.

By Shuvongkor Kumar Datta, S.K.S. Yadav, Jubair Ansary, Ariful Islam
In Volume: 14,Issue: 2
Title: Modeling the Engel Curve for Sustainable Development: Strategies and Applications for the Income-Employment Nexus in South Asia

Abstract: This study investigates the relationship between national income and tourism expenditure, framed within the context of the Engel curve, for six South Asian nations with significant potential for Halal tourism: Bangladesh, India, Maldives, Nepal, Pakistan, and Sri Lanka. Utilizing a Generalized Least Squares (GLS) model on panel data from 2000 to 2024, we analyze the impact of GDP per capita on outbound tourism expenditure. Our findings indicate a positive and elastic income elasticity of tourism demand (0.989), signifying that tourism is a luxury good and that financial outlay on travel increases more than proportionally with income. The results underscore the critical opportunity for these countries to develop their Halal tourism sectors to capture a share of this elastic expenditure, thereby fostering economic diversification and employment generation. The study concludes with targeted policy recommendations aimed at leveraging this income-elastic demand for sustainable economic development.

By Md. Mahmudul Hassan, Tareq Imam Zahid
In Volume: 14,Issue: 2
Title: A Comparative Performance Appraisal of Bajaj Finance Ltd. and Tata Capital Financial Services Ltd.

Abstract: Non-Banking Financial Companies (NBFCs) play a crucial role in the Indian financial system by complementing banks in providing credit, promoting financial inclusion, and offering specialised financial services. The present study aims to evaluate the performance of selected NBFCs in India using key financial indicators. This research analyses profitability, liquidity, solvency, and efficiency ratios to assess the overall financial health of these organisations. Secondary data has been collected from annual reports and published financial statements of the selected NBFCs for a specific period. The findings reveal performance variations among NBFCs, highlighting strengths, weaknesses, and areas for improvement. This study conducts a comparative performance appraisal of two major Non-Banking Financial Companies operating in the National Capital Region (NCR) of India: Bajaj Finance Ltd. (Gurgaon) and Tata Capital Financial Services Ltd. (Noida). Using key financial metrics such as Assets Under Management (AUM), profitability ratios (Return on Assets - ROA, Return on Equity - ROE), net interest margin (NIM), asset quality (non-performing assets - NPAs), and capital adequacy, this paper evaluates the financial health, operational efficiency, and performance dynamics of both NBFCs. The findings highlight significant differences arising from their business strategies, asset quality, and scale of operations, providing actionable insights for investors, regulators, and stakeholders.

By Firoj Ahmed, Arvind Kumar Yadav
In Volume: 14,Issue: 2