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Economic Research Summer Analyst

Central Bank of Nepal

May - June 2025
Kathmandu, Nepal (Onsite)
Economic Research Department

Position Overview

As an Economic Research Summer Analyst at Nepal Rastra Bank (Central Bank of Nepal), I conducted high-level quantitative policy research directly contributing to the nation's monetary policy framework. Working within the Economic Research Department, I collaborated with senior economists and policy advisors to analyze macroeconomic trends, model monetary transmission mechanisms, and present findings to executive leadership.

Key Achievement: Published research in peer-reviewed journal and working papers cited in the formulation of Monetary Policy 2025/26, directly influencing Nepal's economic policy decisions.

Core Responsibilities

1. Quantitative Policy Research

Led comprehensive econometric analysis examining monetary policy transmission:

  • Developed Structural Vector Autoregression (SVAR) models in R to analyze 13 years of quarterly macroeconomic data
  • Examined effectiveness of policy instruments including bank rate, cash reserve ratio, and statutory liquidity ratio
  • Conducted impulse response analysis to quantify time lags in policy transmission
  • Performed variance decomposition to identify dominant transmission channels
  • Validated findings through robustness checks and sensitivity analysis
# Sample analysis performed
library(vars)
library(urca)

# Data preparation and stationarity testing
data_ts <- ts(macro_data, start = c(2012,1), freq = 4)
adf_tests <- lapply(data_ts, ur.df, type = "trend")

# SVAR estimation
var_est <- VAR(data_ts, p = 4, type = "const")
svar_model <- SVAR(var_est)

# Generate policy insights
irf_policy <- irf(svar_model, n.ahead = 12)

2. Excel-Based Financial Modeling

Constructed sophisticated financial models for policy simulation:

  • Built dynamic Excel models linking monetary policy instruments to macroeconomic outcomes
  • Developed scenario analysis frameworks testing policy responses to various economic shocks
  • Created automated data pipelines processing monthly financial stability indicators
  • Designed sensitivity analysis tools for stress testing banking sector resilience
  • Maintained and updated historical macroeconomic databases (156+ months of data)

3. Strategic Policy Briefs & Presentations

Communicated complex analytical findings to central bank leadership:

  • Authored comprehensive policy briefs summarizing research findings and recommendations
  • Presented analytical results to Deputy Governors and department heads
  • Developed executive dashboards in Power BI visualizing key policy indicators
  • Created Tableau visualizations analyzing commercial bank growth patterns and risk factors
  • Contributed to the evidence base for Monetary Policy 2025/26 formulation

4. International Economic Analysis

Supported Nepal's engagement with regional economic forums:

  • Translated complex financial models for 7 South Asian economies into strategic insights
  • Developed comparative analysis of monetary policy frameworks across the region
  • Created infographics and presentation materials for international forums in Bangladesh
  • Supported bilateral economic discussions and international arbitration processes
  • Analyzed cross-border financial linkages and spillover effects

Major Projects & Deliverables

1
Published Paper
13
Years of Data Analyzed
5+
Policy Briefs
7
South Asian Economies

Project 1: Monetary Policy Transmission Study

Objective: Quantify effectiveness of Nepal's monetary policy instruments

Methodology: SVAR analysis with recursive identification scheme

Key Findings:

  • Reserve requirements show strongest transmission (68% of total effect)
  • 4-6 quarter lag between policy action and full economic impact
  • Asymmetric response across different sectors of the economy

Impact: Published in Economic Review of Nepal and cited in central bank working papers

Project 2: Banking Sector Stability Analysis

Objective: Assess commercial banking sector resilience and growth patterns

Approach:

  • Analyzed capital adequacy ratios, liquidity positions, and asset quality indicators
  • Developed early warning indicators for banking sector stress
  • Created interactive dashboards for real-time monitoring

Deliverable: Comprehensive report informing financial stability assessment for Monetary Policy 2025/26

Project 3: Regional Economic Comparison

Scope: Comparative analysis of monetary frameworks across South Asia

Countries Analyzed: India, Bangladesh, Sri Lanka, Pakistan, Bhutan, Maldives, Afghanistan

Output: Infographics and presentation materials for SAARC economic forums

Technical Skills Applied

Programming & Analysis

R SVAR Modeling Time Series Analysis Econometrics Statistical Testing

Data Visualization & Communication

Power BI Tableau Excel ggplot2

Domain Expertise

Monetary Policy Financial Stability Macroeconomics Banking Regulation

Key Accomplishments

Research Publication

Pokhrel, A., & Upreti, S. (2025). Monetary Policy Pass Through Considering the Reserve Ratio and Policy Rate in Nepal: An Empirical Gaze Using SVAR Analysis. Economic Review of Nepal, 8(1), 34-52.

Policy Impact

  • Research findings incorporated into Monetary Policy 2025/26 deliberations
  • Contributed to evidence base for reserve requirement adjustments
  • Supported development of forward guidance communication strategy

Stakeholder Engagement

  • Presented to executive leadership including Deputy Governors
  • Briefed economic research team on methodological approaches
  • Collaborated with international relations department on regional analysis

Learning & Professional Development

Technical Growth

  • Mastered advanced econometric techniques (SVAR, impulse response analysis)
  • Developed expertise in central banking operations and monetary policy frameworks
  • Enhanced data visualization skills for executive communication
  • Gained proficiency in financial stability assessment methodologies

Professional Skills

  • Learned to communicate technical analysis to non-technical policy audiences
  • Developed understanding of policy formulation processes in government institutions
  • Enhanced ability to work under tight deadlines with high-stakes deliverables
  • Built collaborative relationships across organizational hierarchies

Exposure to Central Banking

  • Observed Monetary Policy Committee deliberations and decision-making processes
  • Understood coordination between monetary policy and fiscal policy authorities
  • Gained insights into financial sector supervision and regulation
  • Learned about international economic cooperation in South Asian context

Work Environment & Culture

The Central Bank of Nepal provided a rigorous, professional environment:

  • Collaborative: Worked closely with senior economists, policy advisors, and department heads
  • High-Impact: Research directly influenced national economic policy decisions
  • Intellectually Stimulating: Engaged with cutting-edge economic research and policy debates
  • Professional Standards: Maintained confidentiality and adhered to central bank protocols
  • Mentorship: Received guidance from experienced economists and researchers

Challenges Overcome

Technical Challenges

  • Working with limited sample size (52 quarterly observations) while maintaining statistical rigor
  • Selecting appropriate structural restrictions for SVAR identification
  • Balancing model complexity with interpretability for policy audience
  • Validating findings across multiple robustness checks

Professional Challenges

  • Translating complex econometric results into actionable policy recommendations
  • Meeting tight deadlines for policy briefings and presentations
  • Adapting communication style for different audiences (technical vs. executive)
  • Navigating organizational dynamics in government institution

Skills Developed

Hard Skills

  • Advanced econometric modeling (SVAR, VAR, cointegration analysis)
  • Time series analysis and forecasting
  • Financial stability assessment and banking sector analysis
  • Excel financial modeling and scenario analysis
  • Data visualization for policy communication
  • Academic research and publication

Soft Skills

  • Policy communication and stakeholder management
  • Executive presentation and briefing
  • Cross-cultural collaboration (international context)
  • Time management under pressure
  • Attention to detail in high-stakes environment

Career Impact

This experience at the Central Bank of Nepal has been transformative for my career trajectory:

  • Solidified interest in applied economic research with policy impact
  • Gained credibility through publication in peer-reviewed journal
  • Built network with central banking professionals and economists
  • Demonstrated ability to contribute meaningfully to high-level policy discussions
  • Acquired specialized knowledge in monetary economics and financial stability

Future Applications

Skills and experiences gained are directly applicable to:

  • Graduate studies in economics or public policy
  • Research positions at central banks, IMF, World Bank, or policy think tanks
  • Economic consulting roles requiring policy analysis
  • Financial sector positions in risk management or strategy
  • Academic research in monetary economics or development economics

Interested in My Central Banking Experience?

I'm eager to discuss my research findings, the policy formulation process, and how quantitative analysis informs economic decision-making at the highest levels. Whether you're a potential employer, academic collaborator, or simply curious about central banking, I'd love to connect.

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