"Uncovered interest rate parity and monetary policy rule in a small ope" by Guna Raj Bhatta
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...
Source: uow.edu.au