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In the above argument, we see the author establishes a positive relationship between interest rate and demand for goods and services. According to the statement, low demand for goods and services cause recession of an economy. So comparing with the above mentioned reasoning we can establish another relationship between inflation and unemployment. In macroeconomics, there is a peculiar relationship between inflation and unemployment. This relationship is actually a short run trade off. A high inflation rate in the economy causes low level of unemployment. On the other hand, a very low level inflation rate generates higher level of unemployment. Policymakers can choose anyone out of the two.

In 1958, economist A.W Phillips revealed this trade off. The greater the aggregate demand for goods and services, the greater the economy's output and the higher level of price level. The higher the price level, the higher the rate of inflation. Higher level of inflation points out lower unemployment. In contrast, lower level of inflation points out higher level of unemployment.

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Read the following passage carefully and answer the questions given below.The Italian banking system became the model for those North European nations that would achieve the greatest commercial success in the coming centuries, notably the Dutch, the English, and the Swedes. It was in Amsterdam, London and Stockholm that the next decisive wave of financial or innovation occurred, as the forerunners of modern central banks made their first appearance. The seventeenth century saw the foundation of three distinctly novel institutions that, in their differen in ways, were intended to serve a public as well as a private financial function. The Amsterdam Exchange Bank, i.e. the Wisselbank, was set up in 1609 to resolve the practical problems created for merchants by the circulation of multiple currencies in the United Provinces, where there were no fewer than fourteen different mints and copious quantities of foreign coins. By allowing merchants to set up accounts denominated in a standardized currency, the Exchange Bank pioneered the system of cheques and direct debits or transfers that we take for granted today. This allowed more and more commercial transactions to take place without the need for the sums involved to materialize in actual coins. Financial historians disagree as to how far the growth of banking after the seventeenth century can be credited with the acceleration of economic growth that began in Britain in the late eighteenth 20 5 century and then spread to Western Europe, North America and Australasia. But banks played a more important role in continental European industrialization than they did in England's.a) Where did the precursors of modern central banks make their first appearance? b) What practical problem was the Wisselbank required to resolve in its initial days?c) How did the Amsterdam Exchange Bank respond to the demand of the age? d) What are the points of disagreement among the financial historians with respect to growth of banking vis-a-vis growth of economy? e) Choose a suitable title for above composition.
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Write a precis of the following paragraph and provide a title:The stated intention of most regulators is to maintain stability within the financial services sector, thereby protecting the consumers whom banks serve and the 'real' economy which the industry supports. Every shock to the financial system must result in casualties. Left to itself, natural selection should work fast to eliminate the weakest institution in the market, which typically are gobbled up by the successful. But most crises also usher in new rules and regulations, as legislators and regulators rush to stabilize the financial system and to protect consumers who are also voters. The critical point is that the possibility of extinction cannot and should not be removed by excessively precautionary rules. As Joseph Schumpeter wrote more than seventy years ago, 'This economic system cannot do without the ultima ratio of the complete destruction of those existences which are irretrievably associated with the hopelessly unadapted.' This meant, in his view, nothing less than the disappearance of 'those firms which are unfit to live'. It remains to be seen whether the extraordinary measures taken by Western governments since September 2008 will have the desired effect of preventing complete breakdown of the financial system or whether they will in fact end up impeding the process of financial evolution.
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Appropriate central bank response to persistent fiscal dominance will vary according to specific country situations, but in all cases they need to be unrelenting in strong advocacy for fiscal restraint, insisting on stabilization of public debt and growth of tax bases in tandem with expansion of public expenditure, so as not to let sovereign borrowing levels strain financial stability. Also, central banks should maintain real interest rates at such levels to dissuade borrowing binge by public and private also be needed occasionally. Beside these steps in terms of traditional role in the private profit driven market economy framework, promotion of pursuit of socially responsible business ethos would help consulate stability, by curbing debt addiction and short term speculative profit seeking at the expense of log terms sustainability in the real and financial sectors. (Translate English to Bengali)
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Extreme poverty, as defined by the World Bank, meant not having enough income to meet the basic human needs for adequate food, water, shelter, clothing. sanitation, health care or education 2008, the Bank calculated that this requires a daily income that is the purchasing power equivalent of about USD 1.25 per day in the United States. That is not the foreign exchange equivalent of USD 1.25, which might not be so bad, because as everyone who travels from a rich country to a poor cr knows, the currencies of rich countries often have much greater purchasing power in poor countrie The World Bank's definition takes that difference into account: the poor earn only as much as buy, in their currency, the quantity of necessities the USD 1.25 will buy in the United States. Thr Bank estimates that 1.4 billion people have less income than this. (Translate into Bangla)
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One of the major components of inclusive rural transformation includes financial inclusion. But focus on access to financial services is insufficient. Widespread access to efficient and sustainable financial services and capital, without which the benefits of the rural transformation cannot be fully realized is now common felt need. This requires a significant expansion of financial resources and budgets, as well as major improvements in the efficiency and institutional sustainability of rural financial systems. Access to finance is essential for promoting inclusive economic growth and reducing the level of poverty in a country. World Bank defines financial inclusion as access to a full range of affordable formal financial products and services, delivered responsibly by sustainable institutions. Around two billion adults worldwide do not have financial account and many small businesses cannot access the financial instruments they need. Financial inclusion is now explicitly recognized in various sustainable Development Goals of the United Nations. (Translate from English to Bangla)
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