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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 simulation shows that the policy trilemma does not hold in Nepal, such that the model can predict interest r...
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 stability by fixing the exchange rate, real exchange rate has appreciated, external trade competitiveness is...