Price Volatility and Its Impact on Developing Economy: Bangladesh Perspective

Abstract

Exchanging of stuffs to meet the need of human being has been started from the origin of human history, so the fixation of price of daily needs has been playing a significant role. Setting, considering and adjudging price has been a very difficult task for both buyers and sellers. Thus fixing of right price under different circumstances is an important issue. Price fluctuation in goods and services are taking place due to some natural and artificial reasons. Bangladesh being a developing country has been facing recently difficult situations, as both the entrepreneurs and the consumers of industrial and consumer products failed to cope with such frequent and sudden fluctuations in price. This article is an attempt to focus on the reasons of such frequent price fluctuations occurring in both industrial and agricultural products and also to point out ways and means to solve the problem, leading to a better economic situation for sustainable development in trade and consumptions serving the interest of both seller and buyers.

Keywords: Price, Commodity, Agriculture, Natural calamity, Fluctuation, Price volatility.