Regional Economic Cooperation (REC) is a form of economic cooperation where the countries in a specific geographical area form a group voluntarily in order to protect and promote the economic benefits of the whole region.…
Effects of Fixed Exchange Rate Between Indian Rupee and Nepali Rupee Nepal has maintained the fixed exchange rate between NPR and INR (i.e. 100 INR = 160 NPR) for more than 3 decades. During this…
Nepal’s foreign exchange rate system has evolved, reflecting the country’s trade needs and economic structure. Initially, Nepal followed a fixed exchange rate system, pegging the Nepalese rupee to foreign currencies, particularly the Indian rupee, to…
What is Mint Parity Theory of Exchange Rate System? There are various theories for the determination of the exchange rate in Nepal. The major theories are Mint Parity Theory: Gold Standard Theory Purchasing Power Parity…
Managerial Economics is the economics for managers, which helps managers to make rational business decisions using economic theories and tools under the given resources and situation of risk and uncertainty. The managers have to make…
The BoP Theory of Exchange Rate Determination is a modern theory for exchange rate determination. BoP Deficit = appreciation of forex, i.e., exchange rate of forex↑ BoP surplus = depreciation of forex, i.e., exchange rate…
According to this theory, the exchange rate between the currencies of any two countries is calculated by comparing their purchasing power in their local market. It is assumed that each currency has some purchasing power…
It is also called Factor Proportions Theory, or Heckscher–Ohlin Theory. It was developed by Swedish economists Eli Heckscher and Bertil Ohlin in the early 20th century. It is a modern theory that argues the basis…
Elasticity Approach to BoP (Price Effect or Micro Effect) Devaluation & Revaluation – by policy adjustment by the government Depreciation & Appreciation – by market adjustment हामी संग १०० भारु = १६० नेरु छ। यदि…