The lower priority given to the affected output generators in relation to economic management has also increased the weaknesses and vulnerabilities of the economy. Unsatisfactory socioeconomic development indicators, including a very low level of per capita income and a highly skewed distribution of income and access to opportunities, have caused very slow economic development in Nepal. Macroeconomic management in a situation of slower economic growth and higher inflation remains a challenging challenge. task. Increasing aggregate demand would be an important policy option to address slow economic development. However, due to high inflation, any attempt to increase production by increasing aggregate demand could put further pressure on prices. Likewise, monetary measures aimed at controlling excessive money supply could reduce inflation. There is therefore a need to improve monetary policy with the help of credit contraction, increasing the reserve ratio of commercial banks, increasing bank rates, open market operations and other monetary measures.
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