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Macro Modeling Practices at Nepal Rastra Bank

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  • Nepal Rastra Bank

    (Nepal Rastra Bank, Research Department)

  • Nepal Rastra Bank

    (Nepal Rastra Bank, Research Department)

Abstract

This paper presents a brief survey of macroeconomic models of Nepal. It also empirically investigates sectoral models of macroeconomic variables including inflation, monetary aggregate, fiscal and external sector upon which policymakers' concern rests during the process of monetary policy formulation. Sample period of 1975 to 2016 is used for the estimation. The Data Generating Process (DGP) identified in this paper for the variables of interest meets necessary criteria both from theory and empirical ground. These models are useful to understand general relationship from sectoral perspective and to carryout simple forecasting for making monetary and other macroeconomic policy decisions.

Suggested Citation

  • Nepal Rastra Bank & Nepal Rastra Bank, 2018. "Macro Modeling Practices at Nepal Rastra Bank," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 30(1), pages 1-18, April.
    • Handle: RePEc:nrb:journl:v:30:y:2018:i:1:p:1
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Macromodels; Sectoral Models; Inflation; Money Demand; Elasticity and Buoyancy; Export-import Elasticity;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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