Abstract
This study aims to investigate the relationship between key monetary variables in Nepal and GDP growth between 1999 and 2022. All the calculation are made on the base of the data from the website of Nepal Rastra Bank and Ministry of Finance, Nepal. The results have confirmed that the broad money supply and Interest Rate is positively and significantly affect Gross Domestic Product growth in the Nepalese economy. This was done using the Johansen approach to cointegration and the error correction model. Additionally, the Error Correction coefficient term (-0.70) supports the development of a link between monetary-related variables and GDP growth at a 70% rate of adjustments toward the equilibrium.
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