Impact of monetary policy on exchange market pressure: The case of Nepal

Anjan Panday

Journal of Asian Economics, 2015, vol. 37, issue C, 59-71

Abstract: This paper uses a monetary model of exchange market pressure to examine the impact of monetary policy on the Nepalese exchange rate. Using a recently developed estimation technique, impulse indicator saturation, along with general-to-specific modeling, we find that a contractionary monetary policy results in easing of pressure on the exchange rate. The robustness of the results is confirmed using misspecification tests.

Keywords: Exchange market pressure; Monetary policy; Impulse indicator saturation; Remittances; Nepal (search for similar items in EconPapers)
JEL-codes: E4 E5 F3 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:37:y:2015:i:c:p:59-71

DOI: 10.1016/j.asieco.2015.02.001

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