Forgot your password?
Monetary Policy Released By Central Bank Of Nepal
By KTM Metro Reporter
July 22, 2013: the monetary police in the Nepali language posted on the website of Nepal Rastra Bank: central bank of Nepal looks more like a budget speech than a monetary policy. It has made many commitments without statements of doing any concrete things. It has not said how Nepal could keep the inflation rate at 8 percent while India would have more than 10 percent inflation.
The monetary policy says that it will attract investment in the agriculture and productive areas but it does not say how. Everybody knows that people invest in the areas from which they will get highest returns. Is the agriculture such an area? Certainly, it is not.
What are the productive areas? Are they manufacturing, service industry or financial sector, the monetary policy is shy to define them concretely. Any area that produces profits, and support the national economy is the productive area.
The monetary policy should be the arts of controlling the flow of money in the economy to produce the desired effect to achieve the national goals. So, the central bank should mainly focus on how it is going to do rather than going to the details of the micro management of the money flow, and then telling the banks or financial institutions or cooperatives to lend the money to such and such people or industries or activities.
