Asymmetric effects of monetary policy in ASEAN-4 economies
By employing the Markov-switching model, this study examines if real output asymmetrically responds to monetary policy shocks in Indonesia, Malaysia, the Philippines and Thailand. This study provides evidence that a contractionary monetary policy has a larger absolute impact than an expansionary p...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
EuroJournals Publishing
2010
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| Online Access: | http://psasir.upm.edu.my/id/eprint/22742/1/Asymmetric%20effects%20of%20monetary%20policy%20in%20ASEAN.pdf |
| _version_ | 1796970222028062720 |
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| author | Tan, Siow Hooi Habibullah, Muzafar Shah Mohamed, Azali |
| author_facet | Tan, Siow Hooi Habibullah, Muzafar Shah Mohamed, Azali |
| author_sort | Tan, Siow Hooi |
| collection | UPM |
| description | By employing the Markov-switching model, this study
examines if real output asymmetrically responds to monetary policy shocks in Indonesia, Malaysia, the Philippines
and Thailand. This study provides evidence that a contractionary monetary policy has a larger absolute impact than an expansionary policy. Moreover, the effects of an
expansionary policy are gradually mitigated when the inflation rate is increasing (except in Malaysia). These findings imply that monetary authorities must consider not only the behaviour of the inflation process but also the fact that not all economies can react in a similar way to expansionary and contractionary monetary policy shocks.
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| first_indexed | 2024-03-06T07:54:51Z |
| format | Article |
| id | upm.eprints-22742 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T07:54:51Z |
| publishDate | 2010 |
| publisher | EuroJournals Publishing |
| record_format | dspace |
| spelling | upm.eprints-227422016-01-12T08:34:34Z http://psasir.upm.edu.my/id/eprint/22742/ Asymmetric effects of monetary policy in ASEAN-4 economies Tan, Siow Hooi Habibullah, Muzafar Shah Mohamed, Azali By employing the Markov-switching model, this study examines if real output asymmetrically responds to monetary policy shocks in Indonesia, Malaysia, the Philippines and Thailand. This study provides evidence that a contractionary monetary policy has a larger absolute impact than an expansionary policy. Moreover, the effects of an expansionary policy are gradually mitigated when the inflation rate is increasing (except in Malaysia). These findings imply that monetary authorities must consider not only the behaviour of the inflation process but also the fact that not all economies can react in a similar way to expansionary and contractionary monetary policy shocks. EuroJournals Publishing 2010 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22742/1/Asymmetric%20effects%20of%20monetary%20policy%20in%20ASEAN.pdf Tan, Siow Hooi and Habibullah, Muzafar Shah and Mohamed, Azali (2010) Asymmetric effects of monetary policy in ASEAN-4 economies. International Research Journal of Finance and Economics (44). pp. 30-42. ISSN 1450-2887 |
| spellingShingle | Tan, Siow Hooi Habibullah, Muzafar Shah Mohamed, Azali Asymmetric effects of monetary policy in ASEAN-4 economies |
| title | Asymmetric effects of monetary policy in ASEAN-4 economies |
| title_full | Asymmetric effects of monetary policy in ASEAN-4 economies |
| title_fullStr | Asymmetric effects of monetary policy in ASEAN-4 economies |
| title_full_unstemmed | Asymmetric effects of monetary policy in ASEAN-4 economies |
| title_short | Asymmetric effects of monetary policy in ASEAN-4 economies |
| title_sort | asymmetric effects of monetary policy in asean 4 economies |
| url | http://psasir.upm.edu.my/id/eprint/22742/1/Asymmetric%20effects%20of%20monetary%20policy%20in%20ASEAN.pdf |
| work_keys_str_mv | AT tansiowhooi asymmetriceffectsofmonetarypolicyinasean4economies AT habibullahmuzafarshah asymmetriceffectsofmonetarypolicyinasean4economies AT mohamedazali asymmetriceffectsofmonetarypolicyinasean4economies |