Monetary Conditions Index in Singapore.
This paper looks at bound test approach for cointegration analysis, to verify the stability of Singaporean real Gross Domestic Product (GDP), to construct the Monetary Conditions Index (MCI) over the quarterly period 1981:1-2004:4. The bounds test confirms a long-run equilibrium relationship between...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English English |
| Published: |
ICFAI University Press
2008
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| Online Access: | http://psasir.upm.edu.my/id/eprint/15718/ http://psasir.upm.edu.my/id/eprint/15718/1/Monetary%20Conditions%20Index%20in%20Singapore.pdf |
| _version_ | 1848842757205917696 |
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| author | Poon, Wai Ching Habibullah, Muzafar Shah Baharumshah, Ahmad Zubaidi Mohamed, Azali |
| author_facet | Poon, Wai Ching Habibullah, Muzafar Shah Baharumshah, Ahmad Zubaidi Mohamed, Azali |
| author_sort | Poon, Wai Ching |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper looks at bound test approach for cointegration analysis, to verify the stability of Singaporean real Gross Domestic Product (GDP), to construct the Monetary Conditions Index (MCI) over the quarterly period 1981:1-2004:4. The bounds test confirms a long-run equilibrium relationship between the output and its determinants, namely short-term and long-term interest rate, exchange rate, claims on private sector, and share prices. Results reveal evidence of cointegration between these variables in both short and long run. As such, this has further verified the stability of the Singaporean output demand function to construct the Monetary Conditions Index (MCI), and how the Monetary Authority of Singapore (MAS) responds to exchange rate changes and whether the policy responses differ. The study has evidently showed that the actual monetary stance reacts corresponding to the MCIs. |
| first_indexed | 2025-11-15T08:04:12Z |
| format | Article |
| id | upm-15718 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-15T08:04:12Z |
| publishDate | 2008 |
| publisher | ICFAI University Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-157182015-10-29T00:20:34Z http://psasir.upm.edu.my/id/eprint/15718/ Monetary Conditions Index in Singapore. Poon, Wai Ching Habibullah, Muzafar Shah Baharumshah, Ahmad Zubaidi Mohamed, Azali This paper looks at bound test approach for cointegration analysis, to verify the stability of Singaporean real Gross Domestic Product (GDP), to construct the Monetary Conditions Index (MCI) over the quarterly period 1981:1-2004:4. The bounds test confirms a long-run equilibrium relationship between the output and its determinants, namely short-term and long-term interest rate, exchange rate, claims on private sector, and share prices. Results reveal evidence of cointegration between these variables in both short and long run. As such, this has further verified the stability of the Singaporean output demand function to construct the Monetary Conditions Index (MCI), and how the Monetary Authority of Singapore (MAS) responds to exchange rate changes and whether the policy responses differ. The study has evidently showed that the actual monetary stance reacts corresponding to the MCIs. ICFAI University Press 2008-07 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/15718/1/Monetary%20Conditions%20Index%20in%20Singapore.pdf Poon, Wai Ching and Habibullah, Muzafar Shah and Baharumshah, Ahmad Zubaidi and Mohamed, Azali (2008) Monetary Conditions Index in Singapore. Icfai University of Journal of Applied Economics, 7 (4). pp. 6-22. ISSN 0972-6861 English |
| spellingShingle | Poon, Wai Ching Habibullah, Muzafar Shah Baharumshah, Ahmad Zubaidi Mohamed, Azali Monetary Conditions Index in Singapore. |
| title | Monetary Conditions Index in Singapore.
|
| title_full | Monetary Conditions Index in Singapore.
|
| title_fullStr | Monetary Conditions Index in Singapore.
|
| title_full_unstemmed | Monetary Conditions Index in Singapore.
|
| title_short | Monetary Conditions Index in Singapore.
|
| title_sort | monetary conditions index in singapore. |
| url | http://psasir.upm.edu.my/id/eprint/15718/ http://psasir.upm.edu.my/id/eprint/15718/1/Monetary%20Conditions%20Index%20in%20Singapore.pdf |