Testing a non linear model of monetary policy reaction function: evidence from Malaysia

This paper estimates a nonlinear model of monetary policy reaction function by augmenting the standard Taylor rule equation for the case of Malaysia. M\netary policy reaction function is identified by which the BNM sets the current level ofpolicy rates after observing the current level ofoutput, i...

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Main Authors:	Norlin Khalid, Zulkefly Abdul Karim, Izzuddin Yussof
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2014
Online Access:	http://journalarticle.ukm.my/8509/ http://journalarticle.ukm.my/8509/ http://journalarticle.ukm.my/8509/1/jeko_48%282%29-2.pdf

id	ukm-8509
recordtype	eprints
spelling	ukm-85092016-12-14T06:47:23Z http://journalarticle.ukm.my/8509/ Testing a non linear model of monetary policy reaction function: evidence from Malaysia Norlin Khalid, Zulkefly Abdul Karim, Izzuddin Yussof, This paper estimates a nonlinear model of monetary policy reaction function by augmenting the standard Taylor rule equation for the case of Malaysia. M\netary policy reaction function is identified by which the BNM sets the current level ofpolicy rates after observing the current level ofoutput, inflation and exchange rate, and lags ofthesevariables (bachuard looking). (Jsing quarterly time series data set spanningfrom 1991 to 2014, thefindings support the relevance of Taylor rule in which the Bank Negara Malaysia (nNu) sets their policy rates based on both inflation and output growth. In addition, the BNM has also considered the exchange rate in their reactionfunction. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8509/1/jeko_48%282%29-2.pdf Norlin Khalid, and Zulkefly Abdul Karim, and Izzuddin Yussof, (2014) Testing a non linear model of monetary policy reaction function: evidence from Malaysia. Jurnal Ekonomi Malaysia, 48 (2). pp. 19-27. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2014-2.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This paper estimates a nonlinear model of monetary policy reaction function by augmenting the standard Taylor rule equation for the case of Malaysia. M\netary policy reaction function is identified by which the BNM sets the current level ofpolicy rates after observing the current level ofoutput, inflation and exchange rate, and lags ofthesevariables (bachuard looking). (Jsing quarterly time series data set spanningfrom 1991 to 2014, thefindings support the relevance of Taylor rule in which the Bank Negara Malaysia (nNu) sets their policy rates based on both inflation and output growth. In addition, the BNM has also considered the exchange rate in their reactionfunction.
format	Article
author	Norlin Khalid, Zulkefly Abdul Karim, Izzuddin Yussof,
spellingShingle	Norlin Khalid, Zulkefly Abdul Karim, Izzuddin Yussof, Testing a non linear model of monetary policy reaction function: evidence from Malaysia
author_facet	Norlin Khalid, Zulkefly Abdul Karim, Izzuddin Yussof,
author_sort	Norlin Khalid,
title	Testing a non linear model of monetary policy reaction function: evidence from Malaysia
title_short	Testing a non linear model of monetary policy reaction function: evidence from Malaysia
title_full	Testing a non linear model of monetary policy reaction function: evidence from Malaysia
title_fullStr	Testing a non linear model of monetary policy reaction function: evidence from Malaysia
title_full_unstemmed	Testing a non linear model of monetary policy reaction function: evidence from Malaysia
title_sort	testing a non linear model of monetary policy reaction function: evidence from malaysia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2014
url	http://journalarticle.ukm.my/8509/ http://journalarticle.ukm.my/8509/ http://journalarticle.ukm.my/8509/1/jeko_48%282%29-2.pdf
first_indexed	2023-09-18T19:52:28Z
last_indexed	2023-09-18T19:52:28Z
_version_	1777406311337558016

Testing a non linear model of monetary policy reaction function: evidence from Malaysia

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