A vector error correction model (VECM) approach in explaining the relationship between interest rate and inflation towards exchange rate volatility in Malaysia

• Main Authors: Abu Hassan Asari, Fadli Fizari, Baharuddin, Nurul Syuhada, Jusoh, Nurmadihah, Mohamad, Zuraida, Shamsudin, Norazidah, Jusoff, Kamaruzaman
• Format: Article
• Language: English
• Published: IDOSI Publications 2011
• Online Access: http://psasir.upm.edu.my/id/eprint/42908/1/A%20vector%20error%20correction%20model%20%28VECM%29%20approach%20in%20explaining%20the%20relationship%20between%20interest%20rate%20and%20inflation%20towards%20exchange%20rate%20volatility%20in%20Malaysia.pdf; http://psasir.upm.edu.my/id/eprint/42908/; https://www.idosi.org/wasj/wasj12(BES)2011.htm

The exchange rate is one of the most important determinants of a country's relative level of economic health. Exchange rate plays a vital role in a country's level of trade, which is critical to most free market economies in the world. This paper is an attempt to analyze the relationship b...