Revisiting Money Demand In Malaysia: Simple-Sum Versus Divisia Monetary Aggregates
This paper attempts to determine whether Divisia Monetary Aggregates is a superior monetary instrument in Malaysia where monetary targeting has been replaced by interest rate targeting due to the inadequacy of the monetary aggregates in predicting imperative economic activities. Is there any discer...
| Main Authors: | , , , |
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| Format: | Proceeding |
| Language: | English |
| Published: |
2008
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/18580/ http://ir.unimas.my/id/eprint/18580/3/REVISITING%20MONEY%20DEMAND%20IN%20MALAYSIA%20%28abstract%29.pdf |
| _version_ | 1848838542467268608 |
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| author | Puah, Chin Hong Leong, Choi Meng Shazali, Abu Mansor Lau, Evan |
| author_facet | Puah, Chin Hong Leong, Choi Meng Shazali, Abu Mansor Lau, Evan |
| author_sort | Puah, Chin Hong |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This paper attempts to determine whether Divisia Monetary Aggregates is a superior monetary instrument in Malaysia where monetary targeting has been replaced by interest rate targeting due to the inadequacy of the monetary aggregates in predicting imperative economic activities. Is there any discernible evidence to suggest that Divisia monetary Aggregates possess significant relationship with the macroeconomics indicators? The empirical results in this study indicate that Divisia M2 performs excellently in the money demand function of Malaysia that incorporated the financial reform and financial development variables. The significance of Divisia money validates the usefulness of monetary targeting to formulate monetary policy in Malaysia. |
| first_indexed | 2025-11-15T06:57:13Z |
| format | Proceeding |
| id | unimas-18580 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:57:13Z |
| publishDate | 2008 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-185802017-11-28T01:26:36Z http://ir.unimas.my/id/eprint/18580/ Revisiting Money Demand In Malaysia: Simple-Sum Versus Divisia Monetary Aggregates Puah, Chin Hong Leong, Choi Meng Shazali, Abu Mansor Lau, Evan HB Economic Theory This paper attempts to determine whether Divisia Monetary Aggregates is a superior monetary instrument in Malaysia where monetary targeting has been replaced by interest rate targeting due to the inadequacy of the monetary aggregates in predicting imperative economic activities. Is there any discernible evidence to suggest that Divisia monetary Aggregates possess significant relationship with the macroeconomics indicators? The empirical results in this study indicate that Divisia M2 performs excellently in the money demand function of Malaysia that incorporated the financial reform and financial development variables. The significance of Divisia money validates the usefulness of monetary targeting to formulate monetary policy in Malaysia. 2008 Proceeding PeerReviewed text en http://ir.unimas.my/id/eprint/18580/3/REVISITING%20MONEY%20DEMAND%20IN%20MALAYSIA%20%28abstract%29.pdf Puah, Chin Hong and Leong, Choi Meng and Shazali, Abu Mansor and Lau, Evan (2008) Revisiting Money Demand In Malaysia: Simple-Sum Versus Divisia Monetary Aggregates. In: International Conference on Business and Information (BAI2008), Seoul, South Korea. |
| spellingShingle | HB Economic Theory Puah, Chin Hong Leong, Choi Meng Shazali, Abu Mansor Lau, Evan Revisiting Money Demand In Malaysia: Simple-Sum Versus Divisia Monetary Aggregates |
| title | Revisiting Money Demand In Malaysia: Simple-Sum Versus Divisia Monetary Aggregates |
| title_full | Revisiting Money Demand In Malaysia: Simple-Sum Versus Divisia Monetary Aggregates |
| title_fullStr | Revisiting Money Demand In Malaysia: Simple-Sum Versus Divisia Monetary Aggregates |
| title_full_unstemmed | Revisiting Money Demand In Malaysia: Simple-Sum Versus Divisia Monetary Aggregates |
| title_short | Revisiting Money Demand In Malaysia: Simple-Sum Versus Divisia Monetary Aggregates |
| title_sort | revisiting money demand in malaysia: simple-sum versus divisia monetary aggregates |
| topic | HB Economic Theory |
| url | http://ir.unimas.my/id/eprint/18580/ http://ir.unimas.my/id/eprint/18580/3/REVISITING%20MONEY%20DEMAND%20IN%20MALAYSIA%20%28abstract%29.pdf |