Modelling the Stability of Money Demand in Small Open Economy: The Case of Malaysia
This paper re-examines the money demand in Malaysia covering the period from 1974 to 2001, a period characterised by various events particularly the financial sector liberalisation, changes in monetary framework and currency crises. Our results support the existence of fairly stable long-run money demand function despite the various changes and developments in the economy. However, there is an evidence of instability in short-run money demand. On this ground, the monetary targeting framework in Malaysia seems to be appropriate at least in the 1990s and monetary aggregate continue to be a useful longer-term indicator in the formulation of monetary policy.
Year of publication: |
2005
|
---|---|
Authors: | Muhd-Zulkhibri ; Majid, A. |
Published in: |
The IUP Journal of Applied Economics. - IUP Publications. - Vol. IV.2005, 2, p. 7-23
|
Publisher: |
IUP Publications |
Saved in:
Saved in favorites
Similar items by person
-
Talib, B. D., (1976)
-
Growth of Pomadasys kaakan (Haemulidae) off the coast of Pakistan
Majid, A.,
-
Growth of Pomadasys kaakan (Haemulidae) off the coast of Pakistan
Majid, A., (1991)
- More ...