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Abstract. The Grameen (grameen means rural) Bank of Bangladesh has innovated a mechanism under which credit can be provided to the poorest of the poor on a group liability basis instead of any collateral. Based on this principle, over the last decade, the bank has been successfully operating with an unprecedented loan recovery rate. Although from the point of view of profits, the Grameen Bank is not yet a viable institution, empirical evidence suggests that the bank's credit program has significantly improved the socioeconomic conditions of its borrowers. The Grameen Bank's success story in the alleviation of poverty in Bangladesh has resulted in widespread attempts of its replication in many other countries including the United States and Canada. The spread of the Grameen Bank idea around the world has drawn keen attention from researchers, policy makers and agencies interested in rural development.

Discussion of the non-monetary or the subsistence sector; analysis of the organized and unorganized money markets; explanation of the importance and need for the expansion of the monetized sector; examination of some policy measures towards increasing the share of the monetary sector of the economy. (DSE)

This paper tests the relationship between financial development and GDP volatility using Chinese data for the period 1977–2006. Our findings in this study suggest that a higher financial development reduces the volatility of real per capita GDP. The Autoregressive Distributed Lag (ARDL) technique to cointegration is employed to establish the existence of a long run relationship between financial developments and standard deviation of GDP – a measure of GDP volatility. In addition, this research draws some policy implications for further development of the financial sectors for economic stability and sustainable growth in China.

The economy of Bangladesh is currently going through a period of continuous budget deficit. The present data suggest that the government budget deficit, on average, is nearly 5% of the country's GDP. This has been true since the early 2000s. To finance this deficit, governments have been borrowing largely from domestic and foreign sources resulting in inflationary pressure on one hand, and crowding out of private investments on the other. During the same period, although the economy has grown steadily at a rate of more than 6%, this growth is less than the potential. This article presents an econometric study of the impact of government budget deficits on the economic growth of Bangladesh. We conduct a time-series analysis using ordinary least squares estimation, vector error correction model, and granger causality test. The findings suggest that the government budget deficit has statistically significant negative impact on economic growth in Bangladesh. Policy implications of our findings include reestablishing the rule of law, political stability in the country, restructuring tax structure, closing tax loopholes, and harmonizing fiscal policy with monetary policy to attract additional domestic and foreign investment.