Economy Forward

  Article's background I happened to see the attached press release on the title " Highlights of the Government Tax Policy and Expenditure Management Measures " issued by the Ministry of Finance on 30 August 2024 ( Press here to read the press release ) and found that its contents are not only inappropriate in economics but also misleads the public. I prove it by commenting on its opening section reproduced below. The rest of the press release contains a set of budgetary numbers mostly in meaningless percentages of GDP which has no meaning on the overall economy or living standards affected by a triple crises, i.e., global pandemic, political violence and foreign currency, which the country had never experienced before. Five contents selected for my comments I focus on following five contents from the highlighted above. Weak government revenue as one of the fundamental causes of the economic crisis. The ill-timed tax reduction in 2019 as the major contributor to the count

Article's Background This article provides highlights on central bank operations on money printing during 1st 8 months of 2024. Earlier, I have been releasing articles on monetary operations (Read it here) .  Therefore, I redesigned this article to provide an overall assessment of monetary operations and monetary policy focusing on domestic price stability being the  primary goal of the central bank . Key observations and recommendations are as follows. Money printing operations are ad-hoc actions to provide reserves to banks and to purchase proceeds of govt. foreign loans. Re-dollarization of the monetary system on govt. foreign loans-based foreign reserve is evident. Data do not support the flexible inflation target story of the monetary policy. Therefore, the next government must seriously assess whether this is the model of money printing and monetary system the country needs to support the recovery from the present economic crisis and development of the economy and living stan