Economic Factors Influencing The Probability of Adjustment in Nepal's Exchange Rate Policy with The Indian Currency (A Binominal Probit Analysis for the Period of 1976-7998)
A binomial probit analysis, using the monetary model of exchange rate determination, is applied to understand economic influences on the probability for adjustment in Nepal’s exchange rate policy with the Indian Currency during the period of 1976 - 1998. Empirical results suggest that both relative Nepalese to Indian money and output growth does not have significant effects on probability of exchange rate change but that the relative interest rate growth does. Additionally, the movement of relative interest rate growth variable of Nepal and India is seen to signal changes in real, versus nominal as put forward in the monetary model, rates of return whose divergence increases the probability of appreciation of the Nepalese Currency vis-à-vis the Indian Currency.
Volume (Year): 13 (2001)
Issue (Month): (April)
|Contact details of provider:|| Web page: http://www.nrb.org.np/ecorev/Email: |
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, March.
- Nephil Matangi Maskay, 1998. "The Impact of the Indian Monetary Policy and the Official Exchange Rate of Nepalese Monetary Policy," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 10, pages 44-63, April.
- Nephil Matangi Maskay, 2000. "A cautionary note in using patterns of shocks to determine optimal exchange rate policy. An exploration of Nepalese and Indian exchange rate relations: 1964-1994," Applied Economics, Taylor & Francis Journals, vol. 32(4), pages 491-497.
When requesting a correction, please mention this item's handle: RePEc:nrb:journl:v:13:y:2001:p:35-49. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr. Bishnu Prasad Gautam)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.