Citation

Lee, Huay Huay and Alwi, Siti and Phang, Mei Syuen and Lee, Hock Ann (2020) US monetary policy shocks and macroeconomic fluctuations in Malaysia. Journal of International Finance and Economics, 20 (2). pp. 15-26. ISSN 1555-6336

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Abstract

This research intends to investigate the US monetary shocks and its impact on selected macroeconomic variables on Malaysia, a small and open economy. This research estimates a structural VAR model using monthly data from January 2000 to February 2016. The result suggests that the Malaysian ringgit and industrial production were mostly affected by the US financial market variables. In comparison, Malaysia's inflation rate was relatively less affected by this external shock as compared to oil price shocks. This shows that the Malaysian ringgit serves as the primary absorber of the external shocks. Given that Malaysia works under a flexible exchange rate system, when the economy experiences external shocks, the nominal exchange rate serves as a natural automatic shock absorber

Item Type:	Article
Uncontrolled Keywords:	US UMP, external shocks, macroeconomic fluctuations
Subjects:	H Social Sciences > HB Economic theory. Demography > HB3711-3840 Business cycles. Economic fluctuations
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	04 Oct 2021 02:33
Last Modified:	04 Oct 2021 02:33
URII:	http://shdl.mmu.edu.my/id/eprint/8454

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