Description
In this study, Nepal's real effective exchange rate and India-Nepal (INR/NPR) bilateral real exchange rate are considered in estimating a BEER based equilibrium exchange rate, in order to further study the possibility of exchange-rate misalignment. Estimation is carried out using Johansen (1988) cointegrated-VAR model.
COinS
Oct 14th, 12:00 AM
Estimating equilibrium exchange rate in Nepal: A BEER approach
In this study, Nepal's real effective exchange rate and India-Nepal (INR/NPR) bilateral real exchange rate are considered in estimating a BEER based equilibrium exchange rate, in order to further study the possibility of exchange-rate misalignment. Estimation is carried out using Johansen (1988) cointegrated-VAR model.