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This book is a revised form of the research work undertook by the author while studying his Masters Degree in Economics at Tribhuvan University unser the supervision of Dr. Yuba Raj Khatiwada, the governor of the Central Bank of Nepal and Associate Prof. Ananta Kumar Mainaly of Tribhuvan University. It empirically tests the demand for real money balances using the recently developed Auto Regressive Distributed Lag Modelling to cointegration and error correction modelling developed by Pesaran and Pesaran(1998).
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