NRB launches new model to predict economic status

Kathmandu, November 21

Nepal Rastra Bank (NRB) has developed a modern macroeconomic model which can predict the status of the country’s economy for a six-month period. The central monetary and regulatory authority has developed the new model that can predict the multiple variables of the economy of the country.

The central bank has developed the new model with cooperation of the ‘2017 Knowledge Partnership Programme’, Korea and the Bank of Korea — central bank of South Korea.

According to Nara Bahadur Thapa, executive director of NRB, the new macroeconomic model can predict the multiple variables that are related to aggregate demand and aggregate supply of the country.

NRB launched the new model today after a final presentation regarding the model, which was chaired by Deputy Governor of the central bank Chinta Mani Siwakoti.

As per NRB, the new model, which has been developed according to ‘log-linearised medium-scale model’ will be able to predict remittance, agricultural sector and Indian inflation position.

“The new model will increase effectiveness in the working procedure of the central bank and NRB will make reforms to other models too that are being used to predict the country’s economy in the near future,” Thapa informed.

Senior Adviser of the 2017 Knowledge Partnership Programme, Haebang Chung, and Kiyoung Park, a professor at the Yonsei University in Seoul, made a presentation about the new macroeconomic model.