Economics, Econometrics and Finance
8 years ago

Budget deficits and money supply drive inflation in Nepal, study finds.

NRB Economic Review
Determinants of Inflation in Nepal: An Empirical Assessment
Shoora Beer Paudyal

Paper Summary

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The study looked at what causes inflation in Nepal from 1975 to 2011. They found that factors like budget deficits, money supply, and Indian prices play a role in causing inflation in both the short and long term. This supports the idea that money supply and economic constraints can lead to inflation in the country.