IMPACT OF MONETARY INDICATORS ON ECONOMY OF NEPAL

Abstract

The research paper examined the relationship in between monetary indicator with Gross domestic product with used of descriptive, casual-comparative method of study. To assessed the level of impact secondary data are collected from Nepal Rastra Bank, current macro economic and financial report of eleven years. The paper analysis current economic situation with study of macro-economic variable. The monetary evaluation including monetary survey, central bank survey, interest rate’s structure, reserve, exchange rate has highlighted the current monetary scenario of nation. The result state that there is positive relationship in between dependent and independent variables. The correlation and regression analysis verified the existence of major impact of foreign assets, money supply, time deposits and board money liquidity on Gross domestic product with use of software of SPSS and Microsoft Excel. The overall research study shows the catastrophe in economic level in case of Nepal and in order to eradicate such risk, monetary evaluation as economic variable study is necessity with efficient utilization of available resources. The government should formulate strong policy and implement such policy with redrafting policy loopholes for economic enhancement and stabilized market.