bored wrote above that devaluation would be bad. Could you please explain your statement? Straight forward macro economic analysis tells me that Currency devaluation is good for exports and will tend to increase real GDP. Of course, the practicality of it, I cannot say anything about. By that I mean the time frame that this would apply for is not certain. And a pegged exchange rate like we have with Indian Rupee has definitely helped Nepal from geting too much inflation since it provides a higher degree of price discipline. A flexible ER would be too unstable in terms of inflation. Samsara, can you please enlighten me as to how Nepal is on the verge of getting hyper inflation like war-time Germany? From my knowledge, I believe Germany simply produced money to pay off all their debts which produced hyper inflation. Unless Nepal did that, I can't see how else hyper inflation would occur in Nepal.