Testing a non linear model of monetary policy reaction function: evidence from Malaysia
This paper estimates a nonlinear model of monetary policy reaction function by augmenting the standard Taylor rule equation for the case of Malaysia. M\netary policy reaction function is identified by which the BNM sets the current level ofpolicy rates after observing the current level ofoutput, i...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2014
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| Online Access: | http://journalarticle.ukm.my/8509/ http://journalarticle.ukm.my/8509/1/jeko_48%282%29-2.pdf |
| _version_ | 1848811807238520832 |
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| author | Norlin Khalid, Zulkefly Abdul Karim, Izzuddin Yussof, |
| author_facet | Norlin Khalid, Zulkefly Abdul Karim, Izzuddin Yussof, |
| author_sort | Norlin Khalid, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | This paper estimates a nonlinear model of monetary policy reaction function by augmenting the standard Taylor rule
equation for the case of Malaysia. M\netary policy reaction function is identified by which the BNM sets the current
level ofpolicy rates after observing the current level ofoutput, inflation and exchange rate, and lags ofthesevariables
(bachuard looking). (Jsing quarterly time series data set spanningfrom 1991 to 2014, thefindings support the relevance
of Taylor rule in which the Bank Negara Malaysia (nNu) sets their policy rates based on both inflation and output
growth. In addition, the BNM has also considered the exchange rate in their reactionfunction. |
| first_indexed | 2025-11-14T23:52:16Z |
| format | Article |
| id | oai:generic.eprints.org:8509 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T23:52:16Z |
| publishDate | 2014 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:85092016-12-14T06:47:23Z http://journalarticle.ukm.my/8509/ Testing a non linear model of monetary policy reaction function: evidence from Malaysia Norlin Khalid, Zulkefly Abdul Karim, Izzuddin Yussof, This paper estimates a nonlinear model of monetary policy reaction function by augmenting the standard Taylor rule equation for the case of Malaysia. M\netary policy reaction function is identified by which the BNM sets the current level ofpolicy rates after observing the current level ofoutput, inflation and exchange rate, and lags ofthesevariables (bachuard looking). (Jsing quarterly time series data set spanningfrom 1991 to 2014, thefindings support the relevance of Taylor rule in which the Bank Negara Malaysia (nNu) sets their policy rates based on both inflation and output growth. In addition, the BNM has also considered the exchange rate in their reactionfunction. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8509/1/jeko_48%282%29-2.pdf Norlin Khalid, and Zulkefly Abdul Karim, and Izzuddin Yussof, (2014) Testing a non linear model of monetary policy reaction function: evidence from Malaysia. Jurnal Ekonomi Malaysia, 48 (2). pp. 19-27. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2014-2.html |
| spellingShingle | Norlin Khalid, Zulkefly Abdul Karim, Izzuddin Yussof, Testing a non linear model of monetary policy reaction function: evidence from Malaysia |
| title | Testing a non linear model of monetary policy reaction function:
evidence from Malaysia |
| title_full | Testing a non linear model of monetary policy reaction function:
evidence from Malaysia |
| title_fullStr | Testing a non linear model of monetary policy reaction function:
evidence from Malaysia |
| title_full_unstemmed | Testing a non linear model of monetary policy reaction function:
evidence from Malaysia |
| title_short | Testing a non linear model of monetary policy reaction function:
evidence from Malaysia |
| title_sort | testing a non linear model of monetary policy reaction function:
evidence from malaysia |
| url | http://journalarticle.ukm.my/8509/ http://journalarticle.ukm.my/8509/ http://journalarticle.ukm.my/8509/1/jeko_48%282%29-2.pdf |