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Essay / Essay on Nepali Economy - 923
The lower priority given to the relevant outcome generators in economic management has also increased the weaknesses and vulnerabilities of the economy. Unsatisfactory socio-economic development indicators, including the very low level of per capita income and the highly unequal distribution of income and access to opportunities, have resulted in very slow economic development in Nepal. Macroeconomic management in a situation of slower economic growth and higher inflation remains a challenge. stain. Increasing aggregate demand would be an important policy option to address slow economic development. However, due to high inflation, any attempt to increase production via an increase in aggregate demand could put further pressure on prices. Likewise, monetary measures aimed at controlling excess money supply could reduce inflation. It is therefore necessary to improve monetary policy with the help of credit contraction, increasing the reserve ratio of commercial banks, increasing bank rates, free market functioning and other measures monetary.