Skip to main content

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

Buy Article:

$47.00 plus tax (Refund Policy)

Nepal and India are developing countries in Asia whose (hard) peg has existed for almost forty years as well as no restriction on capital mobility between both countries. However, empirical results suggest that Nepal and India do not face symmetric patterns of shocks and are thus not suitable for a fixed exchange rate under this criteria. One possible explanation may be that the monetary authority plays some role in the short run to reduce the cost of the exchange rate regime. This suggests that some caution should be used in basing optimal exchange rate policy on this single criteria.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Data/Media
No Metrics

Document Type: Research Article

Publication date: 2000-03-20

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more