Impossible Trinity News Today

Strapline: Inflation uncertainty means an extended wait for a shift in RBI’s stance that could lead to a rate cut. Luckily, policymakers are placed well to keep their focus firmly on price stability.

The CEA pointed out that the calculations for net zero needed to take into account the relocation and labour displacement costs. “Nobody is saying it (transition) is not imperative, but it is important to be realistic about what we want to do and in what time frame and the trade-offs,” he stated.

Dr Rais Hussin and Jason Loh Seong Wei, The Sun Daily IT would be somewhat inconceivable that before the conflict in Ukraine, the process of de-dollarisation would have gained traction at the pace and momentum which is happening now, even if the catalyst and impetus can be mainly attributed to th

Should monetary policy independence be maintained when the exchange rate is fixed under closed capital account conditions in a small open economy? In this study, we simulate the impossible trinity condition during 1989 to 2019 on the Nepalese economy that restricts capital flows and fixes the exchange rate with India. We modify the traditional Taylor rule based on the monetary policy reaction function to characterize Nepal's economic conditions more closely. The state–space model simulati...

Exchange rate and monetary policy are emerging topics under consideration in Nepal’s macroeconomic policy discussions. Since the early 1950s, Nepal has fixed the exchange rate with India. Nepal is highly dependent on India for trade and investment and shares an open border. Both the exchange rate regime and level of peg have not been adjusted since 1993, despite several changes in the macroeconomic environment. Existing empirical evidence has demonstrated that Nepal is importing price stabilit...

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

Richard Cooper, Robert Mundell, and John Williamson made important contributions on a variety of topics in international economics throughout their careers, particularly in terms of how we think about currency arrangements. This column reviews the work of all three, tracing their ideas and drawing lessons for policymakers today.

Paul De Grauwe The opening sentence of Robert Mundell’s 1963 paper “Capital mobility and stabilization policy under fixed and flexible exchange rates” — one of the two most influential in a series of pathbreaking papers he published in the late 1950s and early 1960s — is curious: “The world is still a closed economy, but its regions and countries are becoming increasingly open.” “Still”? Was Mundell thinking of a future with interplanetary trade, so that eventually the world a...

RBI may consider issuing bonds to help soak up foreign money into stocks The RBI report recommended further strengthening foreign-exchange reserves, citing the swings in the rupee around the time of the global taper tantrum in 2013 (Photo: Mint)Premium Subhadip Sircar, , Bloomberg Current laws forbid the RBI from selling its own paper, and budgetary constraints could prevent the government from issuing so-called market stabilization scheme, or MSS, bonds that authorities have used in the past...