Do the Monetary Policy Makers Follow Rules? Testing Taylor’s Rule for Nepal
| Autor: | Khagendra Katuwal |
|---|---|
| Rok vydání: | 2019 |
| Předmět: | |
| Zdroj: | Economic Journal of Nepal. 42:34-42 |
| ISSN: | 1018-631X |
| DOI: | 10.3126/ejon.v42i1-2.35903 |
| Popis: | The study estimates Taylor’s rule for Nepal by using the annual time series data for the period of 1988-2018. As a requirement of Taylor's rule, the output gap has been estimated by using Hodric-Perscott filter. Consumer price index has been used as measure of inflation and 91-days treasury bills rate is taken as the proxy for the short-term interest rate set by central bank of Nepal. The ordinary least square method has been used to estimate the Taylor's equation The results show that. As Augmented Dickey-Fuller test shows that all the variables used in this study are in level form. The results show that there is a positive relationship of T-bills rule with inflation output gap. Interest rate smoothing is found to be a major concern of central bank of Nepal but follows the Taylor’s rule partially. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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