Short-term interest rate and own rate of money in Malaysian money demand function
This article has examined empirically the issues of the role of short-term interest rate and rate of return on money in a money demand function of a developing economy-Malaysia. The results suggest that short-term interest rate and rate of return on money play important role in the Malaysian money d...
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Kebangsaan Malaysia
1989
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| Online Access: | http://psasir.upm.edu.my/id/eprint/28357/1/Short-term%20interest%20rate%20and%20own%20rate%20of%20money%20in%20Malaysian%20money%20demand%20function.pdf |
| _version_ | 1825947301066047488 |
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| author | Habibullah, Muzafar Shah |
| author_facet | Habibullah, Muzafar Shah |
| author_sort | Habibullah, Muzafar Shah |
| collection | UPM |
| description | This article has examined empirically the issues of the role of short-term interest rate and rate of return on money in a money demand function of a developing economy-Malaysia. The results suggest that short-term interest rate and rate of return on money play important role in the Malaysian money demand function, and excluding it from the model could subject it to misspecification error. Also, the model that incorporates short-term interest rate and the rate of return on money is stable over time (in Malaysia, this is true for M2). The results of ex-post forcast suggest that the model that incorporates both short-term interest rate and rate of return on money has better forecasting ability. |
| first_indexed | 2024-03-06T08:11:07Z |
| format | Article |
| id | upm.eprints-28357 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T08:11:07Z |
| publishDate | 1989 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | dspace |
| spelling | upm.eprints-283572016-02-01T05:06:54Z http://psasir.upm.edu.my/id/eprint/28357/ Short-term interest rate and own rate of money in Malaysian money demand function Habibullah, Muzafar Shah This article has examined empirically the issues of the role of short-term interest rate and rate of return on money in a money demand function of a developing economy-Malaysia. The results suggest that short-term interest rate and rate of return on money play important role in the Malaysian money demand function, and excluding it from the model could subject it to misspecification error. Also, the model that incorporates short-term interest rate and the rate of return on money is stable over time (in Malaysia, this is true for M2). The results of ex-post forcast suggest that the model that incorporates both short-term interest rate and rate of return on money has better forecasting ability. Penerbit Universiti Kebangsaan Malaysia 1989-06 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/28357/1/Short-term%20interest%20rate%20and%20own%20rate%20of%20money%20in%20Malaysian%20money%20demand%20function.pdf Habibullah, Muzafar Shah (1989) Short-term interest rate and own rate of money in Malaysian money demand function. Jurnal Ekonomi Malaysia, 19. pp. 3-15. ISSN 0126-1962 http://www.ukm.my/fep/jem/content/1989-1.html |
| spellingShingle | Habibullah, Muzafar Shah Short-term interest rate and own rate of money in Malaysian money demand function |
| title | Short-term interest rate and own rate of money in Malaysian money demand function |
| title_full | Short-term interest rate and own rate of money in Malaysian money demand function |
| title_fullStr | Short-term interest rate and own rate of money in Malaysian money demand function |
| title_full_unstemmed | Short-term interest rate and own rate of money in Malaysian money demand function |
| title_short | Short-term interest rate and own rate of money in Malaysian money demand function |
| title_sort | short term interest rate and own rate of money in malaysian money demand function |
| url | http://psasir.upm.edu.my/id/eprint/28357/1/Short-term%20interest%20rate%20and%20own%20rate%20of%20money%20in%20Malaysian%20money%20demand%20function.pdf |
| work_keys_str_mv | AT habibullahmuzafarshah shortterminterestrateandownrateofmoneyinmalaysianmoneydemandfunction |