Impact of GDP, Inflation

in India, and Money

supply on Inflation in
Nepal

- Srijan Shrestha
- Anuska Jayswal
 Background
• Inflation is the gradual increase in overall price level, which can
benefit or harm the economy.
• In Nepal, CPI, WPI, and SWRI are the main price indexes, with
CPI being the most important for measuring the cost of living and
inflation.
• Inflation is a significant concern in macroeconomics and affects
people's daily lives.
 Background
• Nepal, like other nations with land borders, experiences inflation
issues.
• Studies into the variables that influence inflation are becoming
increasingly important.
• The study will examine GDP, money supply (broad), and Indian
inflation as independent variables.
 Problem Statement
• Nepal's government is concerned about rising inflation rates, which
have ranged from 3.73% to 21.07% since 1973.
• Restrictions and actions are being taken to maintain a sustainable
inflation rate..
• Recent empirical evidence linking inflation to key macroeconomic
indicators in Nepal is lacking.
• This study aims to examine the relationship between inflation and
variables such as GDP, money supply, and Indian inflation to fill
this gap.
 Data Source
• Our study analyzes the relationship between GDP, inflation, and
money supply in Nepal from 1975 to 2020.
• The World Bank's development indicator was used for data analysis.
Presentati on
and Analysis
of Data
 Conclusion

Increasing the production of goods and services while utilizing productive resources
from the money and capital markets is the long-term plan to combat inflation.