Does Monetary Policy Work Effectively In 10 European Countries? New Evidence From Fisher Effect

This study examines the Fisher effect for 10 European Union countries over a period from January 1987 to December 2012. A battery of panel unit root tests shows that the monthly real interest rates in these countries are mean reverting. The series-specific panel SURADF test of Breuer et al. (2002)...

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Main Authors: Ling, Tai-Hu, Liew, Venus Khim-Sen
Format: Proceeding
Language:English
Published: 2013
Subjects:
Online Access:http://ir.unimas.my/id/eprint/17998/
http://ir.unimas.my/id/eprint/17998/1/DOES%20MONETARY%20POLICY%20WORK%20EFFECTIVELY%20IN%2010%20EUROPEAN%20COUNTRIES%20%28abstract%29.pdf
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author Ling, Tai-Hu
Liew, Venus Khim-Sen
author_facet Ling, Tai-Hu
Liew, Venus Khim-Sen
author_sort Ling, Tai-Hu
building UNIMAS Institutional Repository
collection Online Access
description This study examines the Fisher effect for 10 European Union countries over a period from January 1987 to December 2012. A battery of panel unit root tests shows that the monthly real interest rates in these countries are mean reverting. The series-specific panel SURADF test of Breuer et al. (2002) reveals that 9 country series reject the unit root null hypothesis, except for 1 country series. These results have one extremely important policy implication is that monetary collaboration within 10 European counties is the key determinant to achieve the long-run macroeconomic stability. Policy makers in European Central Bank need to closely monitor the monetary stability particularly in Luxembourg towards establishing a strong European monetary union.
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format Proceeding
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institution Universiti Malaysia Sarawak
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language English
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publishDate 2013
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spelling unimas-179982017-10-09T02:04:56Z http://ir.unimas.my/id/eprint/17998/ Does Monetary Policy Work Effectively In 10 European Countries? New Evidence From Fisher Effect Ling, Tai-Hu Liew, Venus Khim-Sen H Social Sciences (General) This study examines the Fisher effect for 10 European Union countries over a period from January 1987 to December 2012. A battery of panel unit root tests shows that the monthly real interest rates in these countries are mean reverting. The series-specific panel SURADF test of Breuer et al. (2002) reveals that 9 country series reject the unit root null hypothesis, except for 1 country series. These results have one extremely important policy implication is that monetary collaboration within 10 European counties is the key determinant to achieve the long-run macroeconomic stability. Policy makers in European Central Bank need to closely monitor the monetary stability particularly in Luxembourg towards establishing a strong European monetary union. 2013 Proceeding NonPeerReviewed text en http://ir.unimas.my/id/eprint/17998/1/DOES%20MONETARY%20POLICY%20WORK%20EFFECTIVELY%20IN%2010%20EUROPEAN%20COUNTRIES%20%28abstract%29.pdf Ling, Tai-Hu and Liew, Venus Khim-Sen (2013) Does Monetary Policy Work Effectively In 10 European Countries? New Evidence From Fisher Effect. In: Proceedings of the 2nd Applied International Business Conference, 7-8 December 2016, Universiti Malaysia Sabah, Labuan, Malaysia.
spellingShingle H Social Sciences (General)
Ling, Tai-Hu
Liew, Venus Khim-Sen
Does Monetary Policy Work Effectively In 10 European Countries? New Evidence From Fisher Effect
title Does Monetary Policy Work Effectively In 10 European Countries? New Evidence From Fisher Effect
title_full Does Monetary Policy Work Effectively In 10 European Countries? New Evidence From Fisher Effect
title_fullStr Does Monetary Policy Work Effectively In 10 European Countries? New Evidence From Fisher Effect
title_full_unstemmed Does Monetary Policy Work Effectively In 10 European Countries? New Evidence From Fisher Effect
title_short Does Monetary Policy Work Effectively In 10 European Countries? New Evidence From Fisher Effect
title_sort does monetary policy work effectively in 10 european countries? new evidence from fisher effect
topic H Social Sciences (General)
url http://ir.unimas.my/id/eprint/17998/
http://ir.unimas.my/id/eprint/17998/1/DOES%20MONETARY%20POLICY%20WORK%20EFFECTIVELY%20IN%2010%20EUROPEAN%20COUNTRIES%20%28abstract%29.pdf