I was looking for the dynamics of
fiscal and monetary policy in the Nepalese economy. Both have a specific economic and political
explanation, though monetary policy stands more economic connotation than the
fiscal one. Although the central bank has a specialized department and relatively
competent human resources, even their document seems are unable to get the real
picture of the economy.
Since 2004/05 to 20015/16
inflation remains higher than the GDP growth in Nepal. It happened not just like it to be. In reality, it was committed because of the political, structural, and
market-based phenomenon that are not even looked for a reason.
I have gone through another
aspect to analyze the Nepalese economy whether it is 'paradigm shift '. Reviewing
the documents and consulting with then officer bearer, I am almost convinced
with the situation of 'paradigm lost' rather in Nepalese economy. Simply this
conclusion is driven due to the failure of understanding the fundamentals of
how the economy works.
Thus, the period 2004 to 2016,
should be named as a 'lost decade' in Economic history of Nepal. It became so
due to the worst ever understanding about the role of every economic actor.
Table-1:
Relationship Between Real GDP Growth and CPI in Nepal
Note: This issue is elaborated further in an article and the link of the article is in comment box.
waiting eagerly for the next blog sir.
ReplyDeleteYes, but we missed that time. Unable to fix it.
ReplyDelete