Monetary Neutrality in the Nepalese Economy during 1975-2008

One of the methods of measuring the effectiveness of monetary policies is via inspection of monetary neutrality in the economy. It is a concept from classical economics and it suggests that changes in nominal variables do not have any impact on real variables. This paper studies the presence or absence of effective monetary policy in Nepal between 1975 and 2008 by observing money supply (nominal side), and real GDP (real). [NRB]. URL:[http://red.nrb.org.np/publications/economic_review/Economic_Review_(Occasional_Paper)--No_23,_April_2011+5_Monetary_Neutrality_in_the_Nepalese_Economy_during_1975-2008[Mukesh%20Khanal].pdf].