Remittances contribute largely to the national economy. The remittances sent home by the migrants affect development at both the household and national levels. At the household level, remittances help to reduce poverty, improve standard of living and attain higher educational levels. At the...

One of the methods of measuring the effectiveness of monetary policies is via inspection of monetary neutrality in the economy. It is a concept from classical economics and it suggests that changes in nominal variables do not have any impact on real variables. This paper studies the presence or...

This paper attempts to examine volatility pattern of interbank rate of Nepal using daily and monthly data. The empirical results show significant variation in volatility during the period of study. It depicts the clustering of large and small variances of interbank rate. Moreover, as the sum of...

This paper analyzes the money demand function for Nepal during the period of the FY 1997/98 to FY 2009/10 using annual data. The empirical results imply that the cointegration tests clearly show the existence of the long-run relationship between real money balances and its determinants, output...

There is a large volume of literature documenting the analysis of spatial market integration based on individual commodity prices. This paper, instead, contributes to the literature by delineating the existence of spatial market integration using intra-regional price indices. In this context, we...

FDI is much sought after in conflict-stricken countries such as Nepal as it can play a crucial role in the development process. However, the process of attracting and promoting FDI is complex, in particular as most developing countries, including Nepal, are competing for similar types of FDI....

This paper empirically examines the welfare losses arising from the currently rising inflation rate of Nepal using the method introduced into the literature by Bailey (1956) and the demand for real balance function put forward by Deaver (1970). Utilizing annual time series ranging from 1973 to...

The paper examines the interest rate pass through of the policy interest rate to the market interest rate in Nepal. The span of the empirical exercise covers the phase of interest rate liberalization commencing from the first quarter of 1989/1990 to the final quarter of 2008/2009. The result...

The potential output and output gap are key variables in identifying the scope for sustainable non-inflationary growth and assessment of the stance of macroeconomic policies. This paper estimates potential output and the output gap in Nepal by different methodologies. The different methodologies...

This short comment on Epstein's (2008) paper and on the response by Thompson and Derr argues that the symmetry between explanation and prediction cannot satisfactorily be discussed without making clear what prediction means - depending on which connotations the authors have with 'prediction'...