Examinig the Inflation in Nepal

Economists are scared about deflation,despite the massive stimulus from the government.On going Economic crisis has also ended the Regan-Thacher era of free market polices.many developing and developed nations are working towards creating a stronger regulatory entity to over look the market.
But,In Nepal thing are different.Inflation is around 13.5 even though price are falling all around the world .I was listening to a radio talk show broadcasted in BBC Nepal.In the the program the guests have indicated the following reasons for the inflation.

  • Lack of Political Stability
  • Retailer cartel
  • Lack of infrastructure
  • Monopoly of the wholesaler
  • Lack of competition among the whole salers
  • Oligarchy in the retail industry -supported by the various political forces .

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