Monetary policy and exchange market pressure in Malaysia
Exchange market pressure (EMP), which provides a measure of the volume of intervention necessary to achieve any desired exchange rate target, is the latest model used in the measurement of exchange rate conditions. In order to obtain a more complete picture of Malaysia’s condition and to examine ho...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Putra Malaysia Press
2013
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| Online Access: | http://psasir.upm.edu.my/id/eprint/40705/1/03%20Page%2029-46.pdf |
| _version_ | 1825949651481657344 |
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| author | Tey, Sheik Kyin Lee, Chin Habibullah, Muzafar Shah |
| author_facet | Tey, Sheik Kyin Lee, Chin Habibullah, Muzafar Shah |
| author_sort | Tey, Sheik Kyin |
| collection | UPM |
| description | Exchange market pressure (EMP), which provides a measure of the volume of intervention necessary to achieve any desired exchange rate target, is the latest model used in the
measurement of exchange rate conditions. In order to obtain a more complete picture of Malaysia’s condition and to examine how Bank Negara handles different exchange market
pressures, this study considers the Malaysian exchange rate in relation to that of its two major trading partners– namely, Japan (RM/YEN exchange rate) and the United States (RM/USD exchange rate)– to construct EMP models. Monthly data from 1990:1 to 2008:9 were used in this study, and the sample period was further divided based on crisis periods and Malaysia’s experience employing different exchange rate regimes. Vector autoregression (VAR) modeling was used. The study’s findings suggest that the prescription of traditional theory was not followed by Malaysia and that Bank Negara should implement a different monetary policy with a different EMP model only under crisis and fixed exchange rate regimes. |
| first_indexed | 2024-03-06T08:47:50Z |
| format | Article |
| id | upm.eprints-40705 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T08:47:50Z |
| publishDate | 2013 |
| publisher | Universiti Putra Malaysia Press |
| record_format | dspace |
| spelling | upm.eprints-407052015-10-08T04:49:01Z http://psasir.upm.edu.my/id/eprint/40705/ Monetary policy and exchange market pressure in Malaysia Tey, Sheik Kyin Lee, Chin Habibullah, Muzafar Shah Exchange market pressure (EMP), which provides a measure of the volume of intervention necessary to achieve any desired exchange rate target, is the latest model used in the measurement of exchange rate conditions. In order to obtain a more complete picture of Malaysia’s condition and to examine how Bank Negara handles different exchange market pressures, this study considers the Malaysian exchange rate in relation to that of its two major trading partners– namely, Japan (RM/YEN exchange rate) and the United States (RM/USD exchange rate)– to construct EMP models. Monthly data from 1990:1 to 2008:9 were used in this study, and the sample period was further divided based on crisis periods and Malaysia’s experience employing different exchange rate regimes. Vector autoregression (VAR) modeling was used. The study’s findings suggest that the prescription of traditional theory was not followed by Malaysia and that Bank Negara should implement a different monetary policy with a different EMP model only under crisis and fixed exchange rate regimes. Universiti Putra Malaysia Press 2013-09 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/40705/1/03%20Page%2029-46.pdf Tey, Sheik Kyin and Lee, Chin and Habibullah, Muzafar Shah (2013) Monetary policy and exchange market pressure in Malaysia. Pertanika Journal of Social Sciences & Humanities, 21 (spec. Sept.). pp. 29-46. ISSN 0128-7702; ESSN: 2231-8534 http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JSSH%20Vol.%2021%20%28S%29%20Sep.%202013/03%20Page%2029-46.pdf |
| spellingShingle | Tey, Sheik Kyin Lee, Chin Habibullah, Muzafar Shah Monetary policy and exchange market pressure in Malaysia |
| title | Monetary policy and exchange market pressure in Malaysia |
| title_full | Monetary policy and exchange market pressure in Malaysia |
| title_fullStr | Monetary policy and exchange market pressure in Malaysia |
| title_full_unstemmed | Monetary policy and exchange market pressure in Malaysia |
| title_short | Monetary policy and exchange market pressure in Malaysia |
| title_sort | monetary policy and exchange market pressure in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/40705/1/03%20Page%2029-46.pdf |
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