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Monetary Policy in Bhutan : Implications of Indian Rupee Circulation

open access: yesMonetary Policy in Bhutan : Implications of Indian Rupee Circulation
The central bank of Bhutan issues its currency the ngultrum. At the same time, the Indian rupee circulates within the country with parity This paper investigates the implications of rupee circulation for monetary policy in Bhutan using the money multiplier framework and evaluates the impact of the "outside" rupee, e.g., Indian currency held within the ...
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