Work

Asymmetric effects of monetary policy in ASEAN-4 economies

Year: 2010

Type: article

Abstract: By employing the Markov-switching model, this study examines if real output asymmetrically responds to monetary policy shocks in Indonesia, Malaysia, the Philippines and Thailand. This study provides evidence that a contractionary monetary policy has a larger absolute impact than an expansionary policy. Moreover, the effects of an expansionary policy are gradually mitigated when the inflation rate is increasing (except in Malaysia). These findings imply that monetary authorities must consider not only the behaviour of the inflation process but also the fact that not all economies can react in a similar way to expansionary and contractionary monetary policy shocks.

Source: Universiti Putra Malaysia Institutional Repository (Universiti Putra Malaysia)

Authors: Siow‐Hooi Tan, Muzafar Shah Habibullah, Azali Mohamed

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2244635573

FWCI: 0.718

Cites: 49

Cited by: 13

Related to: 10