Validity of fisher effect theory: Evidence from the conventional and Islamic money market in Malaysia
This study attempts to examine existence of Fisher Effect theory in Malaysia’s conventional and Islamic money markets. Time series data has been included for the years 2011 to 2018 and consists of two stages of data analysis. First stage analysis examines the existence of a Fisher Effect relationshi...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Romanian Society for Quality Assurance - SRAC
2021
|
| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/32652/ http://umpir.ump.edu.my/id/eprint/32652/1/Validity%20of%20fisher%20effect%20theory-evidence%20from%20the%20conventional.pdf |
| _version_ | 1848824076417630208 |
|---|---|
| author | Nurazilah, Zainal Mohammed Hariri, Bakri Law, Siong Hook Syahrir, Zaini Mohd Faizal, Ab Razak |
| author_facet | Nurazilah, Zainal Mohammed Hariri, Bakri Law, Siong Hook Syahrir, Zaini Mohd Faizal, Ab Razak |
| author_sort | Nurazilah, Zainal |
| building | UMP Institutional Repository |
| collection | Online Access |
| description | This study attempts to examine existence of Fisher Effect theory in Malaysia’s conventional and Islamic money markets. Time series data has been included for the years 2011 to 2018 and consists of two stages of data analysis. First stage analysis examines the existence of a Fisher Effect relationship by applying the Autoregressive Distributed Lag (ARDL) approach as an estimation method. Second stage analysis determines the strength of the Fisher Effect relationship by imposed restriction β=1 using standard asymptotic Chi-square in Wald test. The findings found that the Fisher Effect theory valid in Malaysia’s Islamic money market but there is no evidence for the conventional market. This outcome suggests that the Islamic money market can accurately predict inflation in the future. However, it appears in a weak form of relationship. Overall, outcomes of this study provide benefits for policy-makers since the existence of the Fisher relationship reflects an effective monetary policy for economic growth and sustainable development |
| first_indexed | 2025-11-15T03:07:17Z |
| format | Article |
| id | ump-32652 |
| institution | Universiti Malaysia Pahang |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T03:07:17Z |
| publishDate | 2021 |
| publisher | Romanian Society for Quality Assurance - SRAC |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | ump-326522022-01-06T04:29:54Z http://umpir.ump.edu.my/id/eprint/32652/ Validity of fisher effect theory: Evidence from the conventional and Islamic money market in Malaysia Nurazilah, Zainal Mohammed Hariri, Bakri Law, Siong Hook Syahrir, Zaini Mohd Faizal, Ab Razak HF Commerce HG Finance QA76 Computer software This study attempts to examine existence of Fisher Effect theory in Malaysia’s conventional and Islamic money markets. Time series data has been included for the years 2011 to 2018 and consists of two stages of data analysis. First stage analysis examines the existence of a Fisher Effect relationship by applying the Autoregressive Distributed Lag (ARDL) approach as an estimation method. Second stage analysis determines the strength of the Fisher Effect relationship by imposed restriction β=1 using standard asymptotic Chi-square in Wald test. The findings found that the Fisher Effect theory valid in Malaysia’s Islamic money market but there is no evidence for the conventional market. This outcome suggests that the Islamic money market can accurately predict inflation in the future. However, it appears in a weak form of relationship. Overall, outcomes of this study provide benefits for policy-makers since the existence of the Fisher relationship reflects an effective monetary policy for economic growth and sustainable development Romanian Society for Quality Assurance - SRAC 2021-10 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/32652/1/Validity%20of%20fisher%20effect%20theory-evidence%20from%20the%20conventional.pdf Nurazilah, Zainal and Mohammed Hariri, Bakri and Law, Siong Hook and Syahrir, Zaini and Mohd Faizal, Ab Razak (2021) Validity of fisher effect theory: Evidence from the conventional and Islamic money market in Malaysia. Quality - Access to Success, 22 (184). 64 -72. ISSN 1582-2559. (Published) https://doi.org/10.47750/QAS/22.184.07 https://doi.org/10.47750/QAS/22.184.07 |
| spellingShingle | HF Commerce HG Finance QA76 Computer software Nurazilah, Zainal Mohammed Hariri, Bakri Law, Siong Hook Syahrir, Zaini Mohd Faizal, Ab Razak Validity of fisher effect theory: Evidence from the conventional and Islamic money market in Malaysia |
| title | Validity of fisher effect theory: Evidence from the conventional and Islamic money market in Malaysia |
| title_full | Validity of fisher effect theory: Evidence from the conventional and Islamic money market in Malaysia |
| title_fullStr | Validity of fisher effect theory: Evidence from the conventional and Islamic money market in Malaysia |
| title_full_unstemmed | Validity of fisher effect theory: Evidence from the conventional and Islamic money market in Malaysia |
| title_short | Validity of fisher effect theory: Evidence from the conventional and Islamic money market in Malaysia |
| title_sort | validity of fisher effect theory: evidence from the conventional and islamic money market in malaysia |
| topic | HF Commerce HG Finance QA76 Computer software |
| url | http://umpir.ump.edu.my/id/eprint/32652/ http://umpir.ump.edu.my/id/eprint/32652/ http://umpir.ump.edu.my/id/eprint/32652/ http://umpir.ump.edu.my/id/eprint/32652/1/Validity%20of%20fisher%20effect%20theory-evidence%20from%20the%20conventional.pdf |