Econometrics conditional on monetary policy shocks in Malaysia: an evaluation of the co-integration along the parameters and crude palm oil price / Nadhirah Amir Ruddin

• Main Author: Amir Ruddin, Nadhirah
• Format: Thesis
• Language: English
• Published: 2021
• Subjects: Macroeconomics; Money supply; Malaysia; Palm oil
• Online Access: https://ir.uitm.edu.my/id/eprint/61405/1/61405.pdf; https://ir.uitm.edu.my/id/eprint/61405/

Palm oil production had largely contributed to the GDP performance for decades in Malaysia. Macroeconomic variables can be extract in selected terms such as inflation, real output and employment which undertake by monetary policy to obtain a particular of objectives. Nonetheless, the policy transmission mechanism is involve by considerable lags whereby monetary policy actions such as amendment in discount rate of the central bank provides indirect effects (Ioannidis and Kontonikas, 2006). According to BNM (2019), broad-based monetary policy has supported global growth that mitigate low inflation's environment. Furthermore, stock market can be constrained by the government using diverse monetary, fiscal approach or other regulations (Wang, 2010). Hence, this research will evaluate the unique relationship between commodity price and monetary policy, which consist of inflation, dollar exchange rate, interest rate, domestic credit to private sector as a proxy for financial innovation and broad money as a proxy for money supply.