Predictive powers of divisia monetary aggregates and simple sum money on inflation: comparative evidence from Malaysia
The weaknesses of simple sum monetary aggregates in both aggregation theory and linkages to macroeconomic variables ultimately led to monetary targeting being replaced by other methods such as inflation targeting and interest rate targeting as monetary policy tools. H...
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| Format: | Final Year Project Report / IMRAD |
| Language: | English English |
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Universiti Malaysia Sarawak (UNIMAS)
2007
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| Online Access: | http://ir.unimas.my/id/eprint/6466/ http://ir.unimas.my/id/eprint/6466/1/Lim.pdf http://ir.unimas.my/id/eprint/6466/4/Lim%20Kok%20Shyong%20ft.pdf |
| _version_ | 1848835921620762624 |
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| author | Lim, Kok Shyong. |
| author_facet | Lim, Kok Shyong. |
| author_sort | Lim, Kok Shyong. |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | The weaknesses of simple sum monetary aggregates in both aggregation theory and linkages to macroeconomic variables ultimately led to monetary targeting being replaced by other methods such as inflation targeting and interest rate targeting as
monetary policy tools. However, innovation in monetary aggregation theory led to the introduction of Divisia monetary aggregates as analternative to simple sum
money.By using a P-Star model framework in the context of Malaysia, this study investigates the performance of Divisia monetary aggregates in predicting inflation
arymovements against their simple sum counterparts. The results showed that Divisia M1 is superior to other monetary aggregates used in this study to forecast future inflationary movements in Malaysia. In addition, the P-Star model of inflation is shown to be a valid empirical model to predict inflation for Malaysia. |
| first_indexed | 2025-11-15T06:15:33Z |
| format | Final Year Project Report / IMRAD |
| id | unimas-6466 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-15T06:15:33Z |
| publishDate | 2007 |
| publisher | Universiti Malaysia Sarawak (UNIMAS) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-64662024-01-02T04:44:35Z http://ir.unimas.my/id/eprint/6466/ Predictive powers of divisia monetary aggregates and simple sum money on inflation: comparative evidence from Malaysia Lim, Kok Shyong. HG Finance The weaknesses of simple sum monetary aggregates in both aggregation theory and linkages to macroeconomic variables ultimately led to monetary targeting being replaced by other methods such as inflation targeting and interest rate targeting as monetary policy tools. However, innovation in monetary aggregation theory led to the introduction of Divisia monetary aggregates as analternative to simple sum money.By using a P-Star model framework in the context of Malaysia, this study investigates the performance of Divisia monetary aggregates in predicting inflation arymovements against their simple sum counterparts. The results showed that Divisia M1 is superior to other monetary aggregates used in this study to forecast future inflationary movements in Malaysia. In addition, the P-Star model of inflation is shown to be a valid empirical model to predict inflation for Malaysia. Universiti Malaysia Sarawak (UNIMAS) 2007 Final Year Project Report / IMRAD NonPeerReviewed text en http://ir.unimas.my/id/eprint/6466/1/Lim.pdf text en http://ir.unimas.my/id/eprint/6466/4/Lim%20Kok%20Shyong%20ft.pdf Lim, Kok Shyong. (2007) Predictive powers of divisia monetary aggregates and simple sum money on inflation: comparative evidence from Malaysia. [Final Year Project Report / IMRAD] (Unpublished) |
| spellingShingle | HG Finance Lim, Kok Shyong. Predictive powers of divisia monetary aggregates and simple sum money on inflation: comparative evidence from Malaysia |
| title | Predictive powers of divisia monetary aggregates and simple sum money on inflation: comparative evidence from Malaysia |
| title_full | Predictive powers of divisia monetary aggregates and simple sum money on inflation: comparative evidence from Malaysia |
| title_fullStr | Predictive powers of divisia monetary aggregates and simple sum money on inflation: comparative evidence from Malaysia |
| title_full_unstemmed | Predictive powers of divisia monetary aggregates and simple sum money on inflation: comparative evidence from Malaysia |
| title_short | Predictive powers of divisia monetary aggregates and simple sum money on inflation: comparative evidence from Malaysia |
| title_sort | predictive powers of divisia monetary aggregates and simple sum money on inflation: comparative evidence from malaysia |
| topic | HG Finance |
| url | http://ir.unimas.my/id/eprint/6466/ http://ir.unimas.my/id/eprint/6466/1/Lim.pdf http://ir.unimas.my/id/eprint/6466/4/Lim%20Kok%20Shyong%20ft.pdf |