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Abstract

This Paper examines aspects of the Chadha-Teja thesis that expansionary macroeconomic policies, rather than floods, might have caused the 1974 Bangladesh Famine. Although empirical findings are broadly consistent with the thesis, they are suggestive rather than conclusive. Nevertheless, one major conclusion is drawn that random natural disasters, such as floods .and droughts, may cause sectoral economic dislocation and misery but they are unlikely to cause a full-blown famine, unless they are accompanied by such 'loose macroeconomic policies, that destroy the credibility of the government to 'food stockholders' in its ability to stabilise the economy.

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