This is even true in the case of containing an increasing risk of financial imbalances when the realized inflation has already been sustained at the target level or when long-term inflation expectations remain well anchored. However, problems may arise when a central bank is conducting monetary easing over a long period in a protracted downturn phase of the economy.
Secondly, Nepal should make good use of the given economic environment and, especially, maximize the benefits flowing from the progress in the openness of the world economy. Thanks to the tidal wave of openness, huge amounts of capital now move across borders and multinational enterprises are transferring production facilities to more advantageous regions.