The relationship between the interest rate and infaltion rate in selected countries
This paper revisits the relationship between the interest rate and inflation in selected countries such as Indonesia, Malaysia, Philippines, Singapore and Thailand. I included the data from 1986Q3 to 20 IIQ3 to examine the disparities in empirical regularities governing the interest rate and inflati...
| Main Author: | |
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| Format: | Final Year Project Report / IMRAD |
| Language: | English |
| Published: |
Universiti Malaysia Sarawak, (UNIMAS)
2012
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/9992/ http://ir.unimas.my/id/eprint/9992/4/Pbua%20Kheng.pdf |
| _version_ | 1848836688509403136 |
|---|---|
| author | Phua, Kheng Leng |
| author_facet | Phua, Kheng Leng |
| author_sort | Phua, Kheng Leng |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This paper revisits the relationship between the interest rate and inflation in selected countries such as Indonesia, Malaysia, Philippines, Singapore and Thailand. I included the data from 1986Q3 to 20 IIQ3 to examine the disparities in empirical regularities governing the interest rate and inflation in these countries. Empirical results show that causality run from interest rate to inflation with positive relationship for Malaysia, Philippines and Thailand, which is partially fit with Fisher effect theory. For short run causality results, Singapore and Malaysia are not having relationship for these two variables. But, the causality of Philippines runs from interest rate to inflation and Thailand runs in opposite direction whiles a bi-directional causality exists for Indonesia. The countries are partially fit the Fisher theory except the Singapore, managing these rates are indeed important policy options in 'promoting macroeconomic stability and sustainability in the region. |
| first_indexed | 2025-11-15T06:27:45Z |
| format | Final Year Project Report / IMRAD |
| id | unimas-9992 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:27:45Z |
| publishDate | 2012 |
| publisher | Universiti Malaysia Sarawak, (UNIMAS) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-99922024-02-20T07:29:24Z http://ir.unimas.my/id/eprint/9992/ The relationship between the interest rate and infaltion rate in selected countries Phua, Kheng Leng HG Finance This paper revisits the relationship between the interest rate and inflation in selected countries such as Indonesia, Malaysia, Philippines, Singapore and Thailand. I included the data from 1986Q3 to 20 IIQ3 to examine the disparities in empirical regularities governing the interest rate and inflation in these countries. Empirical results show that causality run from interest rate to inflation with positive relationship for Malaysia, Philippines and Thailand, which is partially fit with Fisher effect theory. For short run causality results, Singapore and Malaysia are not having relationship for these two variables. But, the causality of Philippines runs from interest rate to inflation and Thailand runs in opposite direction whiles a bi-directional causality exists for Indonesia. The countries are partially fit the Fisher theory except the Singapore, managing these rates are indeed important policy options in 'promoting macroeconomic stability and sustainability in the region. Universiti Malaysia Sarawak, (UNIMAS) 2012 Final Year Project Report / IMRAD NonPeerReviewed text en http://ir.unimas.my/id/eprint/9992/4/Pbua%20Kheng.pdf Phua, Kheng Leng (2012) The relationship between the interest rate and infaltion rate in selected countries. [Final Year Project Report / IMRAD] (Unpublished) |
| spellingShingle | HG Finance Phua, Kheng Leng The relationship between the interest rate and infaltion rate in selected countries |
| title | The relationship between the interest rate and infaltion rate in selected countries |
| title_full | The relationship between the interest rate and infaltion rate in selected countries |
| title_fullStr | The relationship between the interest rate and infaltion rate in selected countries |
| title_full_unstemmed | The relationship between the interest rate and infaltion rate in selected countries |
| title_short | The relationship between the interest rate and infaltion rate in selected countries |
| title_sort | relationship between the interest rate and infaltion rate in selected countries |
| topic | HG Finance |
| url | http://ir.unimas.my/id/eprint/9992/ http://ir.unimas.my/id/eprint/9992/4/Pbua%20Kheng.pdf |