Choosing the Correct Currency Anchor for a Small Economy : The Case of Nepal

The Case of Nepal

Choosing the Correct Currency Anchor for a Small Economy : The Case of Nepal
This paper uses the Sjaastad model to estimate the optimal currency area for the Nepalese rupee and concludes that, currently, Nepal may be reasonably well off with its peg to the Indian rupee. As its economy opens and its trade base and trading partners expand, it may want to reevaluate whether moving toward an exchange rate basket including... READ MORE...

Publication date: August 2004
ISBN 9781451856286
$15.00

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