Monetary Policy Rule and its Performance under Inflation Targeting in Thailand
Hiroyuki Taguchi and
Additional contact information
Mesa Wanasilp: Saitama University Japan
Asian Journal of Economics and Empirical Research, 2018, vol. 5, issue 1, 19-28
This article reviews the Thailand monetary policy rule and its performance under the adoption of inflation targeting regime since 2000. The study estimates the policy reaction function to see if the inflation targeting has been linked with an inflation-responsive monetary policy rule, and investigates whether the monetary policy rule would actually have its transmission effect on inflation, through tracing the impulse responses of inflation rate to monetary policy shocks. The main findings are as follows. The estimation outcomes of the policy reaction function show that the Thailand monetary policy rule is characterized as an inflation- and exchange-rate- responsive rule with forward-looking manner, which is countercyclical against inflation in the long run, but is accompanied with slow adjustment toward a target policy rate. The impulse response analyses imply that the Thailand monetary policy has only a marginal transmission effect on inflation probably due to the slow adjustment of policy rate.
Keywords: Monetary policy rule; Inflation targeting; The Bank of Thailand. (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aoj:ajeaer:2018:p:19-28
Access Statistics for this article
Asian Journal of Economics and Empirical Research is currently edited by Sara Lim
More articles in Asian Journal of Economics and Empirical Research from Asian Online Journal Publishing Group 2885 Sanford Ave SW #43110 Grandville, MI 49418, USA.
Bibliographic data for series maintained by Sara Lim ().