A Monetary Policy Rule: The Augmented Monetary Conditions Index | On the Asean-Five

Wai-Ching Poon

ISBN 10: 3847342614 / ISBN 13: 9783847342618

Published by LAP Lambert Academic Publishing, 2012

About this Item

A Monetary Policy Rule: The Augmented Monetary Conditions Index | On the Asean-Five | Wai-Ching Poon | Taschenbuch | Englisch | LAP Lambert Academic Publishing | EAN 9783847342618 | Verantwortliche Person für die EU: preigu GmbH & Co. KG, Lengericher Landstr. 19, 49078 Osnabrück, mail[at]preigu[dot]de | Anbieter: preigu.

Seller Inventory # 106602437

Bibliographic Details

• Title: A Monetary Policy Rule: The Augmented Monetary Conditions Index | On the Asean-Five
• Publisher: LAP Lambert Academic Publishing
• Publication Date: 2012
• Language: English
• ISBN 10: 3847342614
• ISBN 13: 9783847342618
• Binding: Taschenbuch
• Condition: Neu
• Dimensions: 220W x 150H x 8D millimeters 220 millimeters width by 150 millimeters height by 8 millimeters depth
• Weight: 229 grams
• Seller catalogs:
  • Bücher

About this title

Synopsis

Previous studies suggested Monetary Conditions Index (hereafter MCI) serves as an indicator of the monetary policy stance to capture the degree of tightness of the monetary policy. The weights of the MCI in the model reflect long-term effects of the interest rate and the exchange rate on the economic activity. Nevertheless, MCIs may not be used as an operational target as it is not resilient to shock identification. Recognizing the caveats upon its usage empirically, the augmented MCI (AMCI) is contemplated by incorporating other informative variables into the conventional model. Since monetary policy affects the price level through a number of transmission mechanisms, other variables need to be incorporated to AMCI to account for possible channels in the transmission mechanisms. First, the weight of the AMCI is estimated, and the lag effect on the real GDP is identified using Autoregression Distribution Lags (ARDL) approach. Bounds test reveals evidence of cointegration for ASEAN-Five countries. Results reveal that AMCI tracks the inverse movements of the real GDP plausibly well on average, except during the onset of 1997/98 Asian Financial Crisis.

About the Author

Poon Wai-Ching is a Senior Lecturer in the Economics Department at Monash University Sunway Campus. She is the recepient of several scholarly awards, and she also publishes in international refereed journals and presents in international conferences. She is a member of the Editorial Reviewer Board of Corporate Governance: An International Review.