Financial liberalization in ASEAN and the fisher hypothesis
This study examines the long-run relationship between inflation and nominal interest raes in the 1990s by utilizing the Johansen-Juselius multivariate cointegration technique. The evidence supports the tax-adjusted form of Fisher hypothesis for three ASEAN countries, namely Singapore, Malaysia and T...
| Main Authors: | , , |
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| Format: | Article |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
1999
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| Online Access: | http://journalarticle.ukm.my/1357/ |
| _version_ | 1848809506767634432 |
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| author | Hook Law, Siong Boon Tan, Hui Ahmad Zubaidi Baharumshah, |
| author_facet | Hook Law, Siong Boon Tan, Hui Ahmad Zubaidi Baharumshah, |
| author_sort | Hook Law, Siong |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | This study examines the long-run relationship between inflation and nominal interest raes in the 1990s by utilizing the Johansen-Juselius multivariate cointegration technique. The evidence supports the tax-adjusted form of Fisher hypothesis for three ASEAN countries, namely Singapore, Malaysia and Thailand. Thus, the assumption of a stable real interest rate appears to have empirical support for these low-inflation economies. We also demonstrate that inflation rate is both weakly and strongly exogenous in these three systems. However, the weak form of the hypothesis is decisively rejected for the inflation prone countries like the Philippines and Indonesia. In general, our results suggest that in a deregulated environments real interest rate is insulated from nominal shocks and money is neutral |
| first_indexed | 2025-11-14T23:15:42Z |
| format | Article |
| id | ukm-1357 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T23:15:42Z |
| publishDate | 1999 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | ukm-13572011-09-22T01:41:26Z http://journalarticle.ukm.my/1357/ Financial liberalization in ASEAN and the fisher hypothesis Hook Law, Siong Boon Tan, Hui Ahmad Zubaidi Baharumshah, This study examines the long-run relationship between inflation and nominal interest raes in the 1990s by utilizing the Johansen-Juselius multivariate cointegration technique. The evidence supports the tax-adjusted form of Fisher hypothesis for three ASEAN countries, namely Singapore, Malaysia and Thailand. Thus, the assumption of a stable real interest rate appears to have empirical support for these low-inflation economies. We also demonstrate that inflation rate is both weakly and strongly exogenous in these three systems. However, the weak form of the hypothesis is decisively rejected for the inflation prone countries like the Philippines and Indonesia. In general, our results suggest that in a deregulated environments real interest rate is insulated from nominal shocks and money is neutral Penerbit Universiti Kebangsaan Malaysia 1999 Article PeerReviewed Hook Law, Siong and Boon Tan, Hui and Ahmad Zubaidi Baharumshah, (1999) Financial liberalization in ASEAN and the fisher hypothesis. Jurnal Ekonomi Malaysia, 33 . ISSN 0127-1962 http://www.ukm.my/~penerbit |
| spellingShingle | Hook Law, Siong Boon Tan, Hui Ahmad Zubaidi Baharumshah, Financial liberalization in ASEAN and the fisher hypothesis |
| title | Financial liberalization in ASEAN and the fisher hypothesis |
| title_full | Financial liberalization in ASEAN and the fisher hypothesis |
| title_fullStr | Financial liberalization in ASEAN and the fisher hypothesis |
| title_full_unstemmed | Financial liberalization in ASEAN and the fisher hypothesis |
| title_short | Financial liberalization in ASEAN and the fisher hypothesis |
| title_sort | financial liberalization in asean and the fisher hypothesis |
| url | http://journalarticle.ukm.my/1357/ http://journalarticle.ukm.my/1357/ |