Tests of the different variants of the monetary model in a developing economy : Malaysian experience in the pre-and post-crisis periods.
This study examines the validity of four different variants of the monetary model of exchange rate determination for Malaysia covering both the pre- and post-crisis periods using the vector error-correction models. The findings demonstrate that for both periods, the variables used are cointegrated....
| Main Authors: | , , |
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| Format: | Article |
| Language: | English English |
| Published: |
Routledge
2009
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| Online Access: | http://psasir.upm.edu.my/id/eprint/17000/ http://psasir.upm.edu.my/id/eprint/17000/1/Tests%20Of%20The%20Different%20Variants%20Of%20The%20Monetary%20Model%20In%20A%20Developing%20Economy.pdf |
| _version_ | 1848843118707736576 |
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| author | Lee, Chin Azali, Mohamed M. Masih, Abul Mansur |
| author_facet | Lee, Chin Azali, Mohamed M. Masih, Abul Mansur |
| author_sort | Lee, Chin |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study examines the validity of four different variants of the monetary model of exchange rate determination for Malaysia covering both the pre- and post-crisis periods using the vector error-correction models. The findings demonstrate that for both periods, the variables used are cointegrated. Tests tend to suggest that of the four variants of monetary model, the sticky-price model holds in both periods and the flexible-price model holds only in the post-crisis period. The proportionality between the exchange rate and relative money does not hold in any period. The plotted actual and fitted exchange rates for both sub-samples show that the models are able to track the actual exchange rate trend quiet well. |
| first_indexed | 2025-11-15T08:09:57Z |
| format | Article |
| id | upm-17000 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-15T08:09:57Z |
| publishDate | 2009 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-170002015-10-05T07:31:45Z http://psasir.upm.edu.my/id/eprint/17000/ Tests of the different variants of the monetary model in a developing economy : Malaysian experience in the pre-and post-crisis periods. Lee, Chin Azali, Mohamed M. Masih, Abul Mansur This study examines the validity of four different variants of the monetary model of exchange rate determination for Malaysia covering both the pre- and post-crisis periods using the vector error-correction models. The findings demonstrate that for both periods, the variables used are cointegrated. Tests tend to suggest that of the four variants of monetary model, the sticky-price model holds in both periods and the flexible-price model holds only in the post-crisis period. The proportionality between the exchange rate and relative money does not hold in any period. The plotted actual and fitted exchange rates for both sub-samples show that the models are able to track the actual exchange rate trend quiet well. Routledge 2009 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/17000/1/Tests%20Of%20The%20Different%20Variants%20Of%20The%20Monetary%20Model%20In%20A%20Developing%20Economy.pdf Lee, Chin and Azali, Mohamed and M. Masih, Abul Mansur (2009) Tests of the different variants of the monetary model in a developing economy : Malaysian experience in the pre-and post-crisis periods. Applied Economics, 41 (15). pp. 1893-1902. ISSN 0003-6846 10.1080/00036840601131797 English |
| spellingShingle | Lee, Chin Azali, Mohamed M. Masih, Abul Mansur Tests of the different variants of the monetary model in a developing economy : Malaysian experience in the pre-and post-crisis periods. |
| title | Tests of the different variants of the monetary model in a developing economy : Malaysian experience in the pre-and post-crisis periods. |
| title_full | Tests of the different variants of the monetary model in a developing economy : Malaysian experience in the pre-and post-crisis periods. |
| title_fullStr | Tests of the different variants of the monetary model in a developing economy : Malaysian experience in the pre-and post-crisis periods. |
| title_full_unstemmed | Tests of the different variants of the monetary model in a developing economy : Malaysian experience in the pre-and post-crisis periods. |
| title_short | Tests of the different variants of the monetary model in a developing economy : Malaysian experience in the pre-and post-crisis periods. |
| title_sort | tests of the different variants of the monetary model in a developing economy : malaysian experience in the pre-and post-crisis periods. |
| url | http://psasir.upm.edu.my/id/eprint/17000/ http://psasir.upm.edu.my/id/eprint/17000/ http://psasir.upm.edu.my/id/eprint/17000/1/Tests%20Of%20The%20Different%20Variants%20Of%20The%20Monetary%20Model%20In%20A%20Developing%20Economy.pdf |