Based on the concept of the monetary conditions index (MCI) to underscore the important role of the interest rates parity, the paper attempts to estimate a model of optimal monetary policy for open emerging market economies. It is designed to shed a light of significance of the internal and...

The aim of this paper is to determine the central bank's reaction process. Our estimation of this process uses the extension of structural vector autoregression (SVAR) modelling based on the Svensson (2000) method. The idea that monetary policy is not only concerned with the output gap and...

A noteworthy characteristic of empirical studies on the economic uncertainty index is that very few published papers depend on normative analysis. Therefore, normative analysis cannot be used to refute the precision of the economic uncertainty index; the lack of precision is simply the outcome...

This paper investigates the dynamic of relationship between real money balances and real income, lending rates, interest rates and inflation rate in ASEAN-5, namely Indonesia, Malaysia, Philippine, Singapore and Thailand. Using sample period for each country spans from 1987 month one through...