How does monetary policy affect economic vulnerability to oil price shock as against US economy shock?
This paper investigates the role of the monetary policy in protecting the economy against the external shocks of US output and oil price during the 2007-2009 financial crisis. It also considers economic vulnerability caused by these external shocks after the crisis abated. The application of the str...
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| Format: | Article |
| Language: | English |
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EconJournals
2017
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| Online Access: | http://psasir.upm.edu.my/id/eprint/62043/ http://psasir.upm.edu.my/id/eprint/62043/1/How%20does%20monetary%20policy%20affect%20economic%20vulnerability%20to%20oil%20price%20shock%20as%20against%20US%20economy%20shock.pdf |
| _version_ | 1848854546543017984 |
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| author | Razmi, Fatemeh Mohamed, Azali Lee, Chin Habibullah, Muzafar Shah |
| author_facet | Razmi, Fatemeh Mohamed, Azali Lee, Chin Habibullah, Muzafar Shah |
| author_sort | Razmi, Fatemeh |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper investigates the role of the monetary policy in protecting the economy against the external shocks of US output and oil price during the 2007-2009 financial crisis. It also considers economic vulnerability caused by these external shocks after the crisis abated. The application of the structural vector auto regression (SVAR) model using monthly data from 2002:M1 to 2013:M4 for Indonesia, Malaysia, and Thailand shows that poor influence of monetary policies on monetary policy transmission channels (namely, interest rate, exchange rate, domestic credit, and stock price) in the pre-crisis period could not shield these economies from shocks of oil price and US output. The results of post-crisis period indicate a significant increase in the positive impact of monetary policy on channels of monetary transmission channels compared to the pre-crisis period. However, these economies continue to remain vulnerable to oil price shocks. |
| first_indexed | 2025-11-15T11:11:35Z |
| format | Article |
| id | upm-62043 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:11:35Z |
| publishDate | 2017 |
| publisher | EconJournals |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-620432019-03-20T06:49:22Z http://psasir.upm.edu.my/id/eprint/62043/ How does monetary policy affect economic vulnerability to oil price shock as against US economy shock? Razmi, Fatemeh Mohamed, Azali Lee, Chin Habibullah, Muzafar Shah This paper investigates the role of the monetary policy in protecting the economy against the external shocks of US output and oil price during the 2007-2009 financial crisis. It also considers economic vulnerability caused by these external shocks after the crisis abated. The application of the structural vector auto regression (SVAR) model using monthly data from 2002:M1 to 2013:M4 for Indonesia, Malaysia, and Thailand shows that poor influence of monetary policies on monetary policy transmission channels (namely, interest rate, exchange rate, domestic credit, and stock price) in the pre-crisis period could not shield these economies from shocks of oil price and US output. The results of post-crisis period indicate a significant increase in the positive impact of monetary policy on channels of monetary transmission channels compared to the pre-crisis period. However, these economies continue to remain vulnerable to oil price shocks. EconJournals 2017 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/62043/1/How%20does%20monetary%20policy%20affect%20economic%20vulnerability%20to%20oil%20price%20shock%20as%20against%20US%20economy%20shock.pdf Razmi, Fatemeh and Mohamed, Azali and Lee, Chin and Habibullah, Muzafar Shah (2017) How does monetary policy affect economic vulnerability to oil price shock as against US economy shock? International Journal of Economics and Financial Issues, 7 (2). 544 - 550. ISSN 2146-4138 http://www.econjournals.com/index.php/ijefi/article/view/4122 |
| spellingShingle | Razmi, Fatemeh Mohamed, Azali Lee, Chin Habibullah, Muzafar Shah How does monetary policy affect economic vulnerability to oil price shock as against US economy shock? |
| title | How does monetary policy affect economic vulnerability to oil price shock as against US economy shock? |
| title_full | How does monetary policy affect economic vulnerability to oil price shock as against US economy shock? |
| title_fullStr | How does monetary policy affect economic vulnerability to oil price shock as against US economy shock? |
| title_full_unstemmed | How does monetary policy affect economic vulnerability to oil price shock as against US economy shock? |
| title_short | How does monetary policy affect economic vulnerability to oil price shock as against US economy shock? |
| title_sort | how does monetary policy affect economic vulnerability to oil price shock as against us economy shock? |
| url | http://psasir.upm.edu.my/id/eprint/62043/ http://psasir.upm.edu.my/id/eprint/62043/ http://psasir.upm.edu.my/id/eprint/62043/1/How%20does%20monetary%20policy%20affect%20economic%20vulnerability%20to%20oil%20price%20shock%20as%20against%20US%20economy%20shock.pdf |