Money-income and credit-income relationships during the pre- and the post-liberalization periods: evidence from Malaysia

Using the Bernanke's contemporaneous structural VAR, this paper investigates the role of money and credit in the monetary transmission mechanism during the pre- and post-liberalization periods in Malaysia. During the pre-liberalization period where credit and interest rates were regulated, the...

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Main Authors: Azali, M., Matthews, K.G.P.
Format: Article
Published: Taylor and Francis Group 1999
Online Access:http://psasir.upm.edu.my/id/eprint/112941/
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author Azali, M.
Matthews, K.G.P.
author_facet Azali, M.
Matthews, K.G.P.
author_sort Azali, M.
building UPM Institutional Repository
collection Online Access
description Using the Bernanke's contemporaneous structural VAR, this paper investigates the role of money and credit in the monetary transmission mechanism during the pre- and post-liberalization periods in Malaysia. During the pre-liberalization period where credit and interest rates were regulated, the evidence supports the dominance of bank credit shocks over money shocks in explaining the output variability. After the liberalization of financial market, however, money as well as credit innovations were proven to make significant contribution to the output fluctuation.
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spelling upm-1129412025-01-13T03:30:45Z http://psasir.upm.edu.my/id/eprint/112941/ Money-income and credit-income relationships during the pre- and the post-liberalization periods: evidence from Malaysia Azali, M. Matthews, K.G.P. Using the Bernanke's contemporaneous structural VAR, this paper investigates the role of money and credit in the monetary transmission mechanism during the pre- and post-liberalization periods in Malaysia. During the pre-liberalization period where credit and interest rates were regulated, the evidence supports the dominance of bank credit shocks over money shocks in explaining the output variability. After the liberalization of financial market, however, money as well as credit innovations were proven to make significant contribution to the output fluctuation. Taylor and Francis Group 1999 Article PeerReviewed Azali, M. and Matthews, K.G.P. (1999) Money-income and credit-income relationships during the pre- and the post-liberalization periods: evidence from Malaysia. Applied Economics, 31 (10). pp. 1161-1170. ISSN 0003-6846; eISSN: 1466-4283 https://www.tandfonline.com/doi/abs/10.1080/000368499323382 10.1080/000368499323382
spellingShingle Azali, M.
Matthews, K.G.P.
Money-income and credit-income relationships during the pre- and the post-liberalization periods: evidence from Malaysia
title Money-income and credit-income relationships during the pre- and the post-liberalization periods: evidence from Malaysia
title_full Money-income and credit-income relationships during the pre- and the post-liberalization periods: evidence from Malaysia
title_fullStr Money-income and credit-income relationships during the pre- and the post-liberalization periods: evidence from Malaysia
title_full_unstemmed Money-income and credit-income relationships during the pre- and the post-liberalization periods: evidence from Malaysia
title_short Money-income and credit-income relationships during the pre- and the post-liberalization periods: evidence from Malaysia
title_sort money-income and credit-income relationships during the pre- and the post-liberalization periods: evidence from malaysia
url http://psasir.upm.edu.my/id/eprint/112941/
http://psasir.upm.edu.my/id/eprint/112941/
http://psasir.upm.edu.my/id/eprint/112941/