Modelling the Stability of Money Demand in Small Open Economy: The Case of Malaysia

Muhd-Zulkhibri and Muhamed Zulkhibri Abdul Majid ()

The IUP Journal of Applied Economics, 2005, vol. IV, issue 2, pages 7-23

Abstract: This paper re-examines the money demand in Malaysia covering the period from 1974 to 2001, a period characterised by various events particularly the financial sector liberalisation, changes in monetary framework and currency crises. Our results support the existence of fairly stable long-run money demand function despite the various changes and developments in the economy. However, there is an evidence of instability in short-run money demand. On this ground, the monetary targeting framework in Malaysia seems to be appropriate at least in the 1990s and monetary aggregate continue to be a useful longer-term indicator in the formulation of monetary policy.

Date: 2005

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:icf:icfjae:v:01:y:2005:i:2:p:7-23

Access Statistics for this article

More articles in The IUP Journal of Applied Economics from Icfai Press
Series data maintained by Prof. Venkata Seshaih ().