Series: IMF Working Papers
Author(s): Sibel Beadle
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 August 2004
Keywords: Optimum Currency Area, Asian Crisis, Exchange Rate Basket, Currency Peg, exchange rate, export prices, import prices, currency basket, exchange rate rule, Asian Crises,
This paper uses the Sjaastad model to estimate the optimal currency area for the Nepalese rupee and concludes that, currently, Nepal may be reasonably well off with its peg to the Indian rupee. As its economy opens...