The price of oil in the global market has been declining, we all know that. Policymakers want to know the real impact of it, and implications for the domestic economy. The article (The Geopolitical Impact of Cheap Oil) by Martin Feldstein (Professor of Economics at Harvard University) analyses various aspects of reduction of oil prices.
As a net oil importer of oil, Bangladesh might have similar implications like other importers. However, it has more implication for local electricity production and supply as there are large number of oil-based power generation companies. The consequential impact would be on current account balance and thus the overall balance of payments.
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