Wednesday, September 14, 2011
Published Paper: Monetary Neutrality in the Nepalese Economy
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I had written a paper with a friend, Andrew Mueller, during our MA in University of Cincinnati for a course in Japanese Economy. The paper looked at whether Japan followed proper monetary policies or not during the period from 1980 to 2008 by observing whether "monetary neutrality" held true in the Japanese economy or not during that period.
After coming back to Nepal, I wanted to do the same thing, and wrote a paper to observe monetary neutrality in Nepal during the period 1975-2008. Both the studies used the same methodology--the VAR estimate.
The direct Nepal Rastra Bank's link is now available. Click here if you are interested.
I had written a paper with a friend, Andrew Mueller, during our MA in University of Cincinnati for a course in Japanese Economy. The paper looked at whether Japan followed proper monetary policies or not during the period from 1980 to 2008 by observing whether "monetary neutrality" held true in the Japanese economy or not during that period.
After coming back to Nepal, I wanted to do the same thing, and wrote a paper to observe monetary neutrality in Nepal during the period 1975-2008. Both the studies used the same methodology--the VAR estimate.
The direct Nepal Rastra Bank's link is now available. Click here if you are interested.
Labels: central bank of nepal, monetary economics, monetary neutrality, NRB
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Dear Mukesh Khanal,
I read your article about pegging Nepalese currency with Indian currency in Republica. This article is somehow linked with above article.
According to me, unless we remove this peg, we cannot make our independent monetary policy.Peg with Indian currency is making us virtually uncompetitive with India. Now we are highly depending on India and China for all our needs. We survived so far because of remittance. Our balance of payment is dangerously negative with India and other countries. We are selling billions of US dollars to buy Indian currency. If we use the same amount of Indian currency to counter speculation in case of floating exchange rate than we can easily manage our currency in floating system. Initially, we will face inflation, but eventually we will achieve equilibrium.
Manish Kumar
I read your article about pegging Nepalese currency with Indian currency in Republica. This article is somehow linked with above article.
According to me, unless we remove this peg, we cannot make our independent monetary policy.Peg with Indian currency is making us virtually uncompetitive with India. Now we are highly depending on India and China for all our needs. We survived so far because of remittance. Our balance of payment is dangerously negative with India and other countries. We are selling billions of US dollars to buy Indian currency. If we use the same amount of Indian currency to counter speculation in case of floating exchange rate than we can easily manage our currency in floating system. Initially, we will face inflation, but eventually we will achieve equilibrium.
Manish Kumar
# posted by 
: September 20, 2011 at 10:10 PM
: September 20, 2011 at 10:10 PM Subscribe to Post Comments [Atom]
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