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

• 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/8509/1/jeko_48%282%29-2.pdf; http://journalarticle.ukm.my/8509/; http://www.ukm.my/fep/jem/content/2014-2.html

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...