Financial liberalization in ASEAN and the fisher hypothesis

This study examines the long-run relationship between inflation and nominal interest raes in the 1990s by utilizing the Johansen-Juselius multivariate cointegration technique. The evidence supports the tax-adjusted form of Fisher hypothesis for three ASEAN countries, namely Singapore, Malaysia and T...

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Main Authors:	Hook Law, Siong, Boon Tan, Hui, Ahmad Zubaidi Baharumshah
Format:	Article
Published:	Penerbit Universiti Kebangsaan Malaysia 1999
Online Access:	http://journalarticle.ukm.my/1357/ http://journalarticle.ukm.my/1357/

id	ukm-1357
recordtype	eprints
spelling	ukm-13572011-09-22T01:41:26Z http://journalarticle.ukm.my/1357/ Financial liberalization in ASEAN and the fisher hypothesis Hook Law, Siong Boon Tan, Hui Ahmad Zubaidi Baharumshah, This study examines the long-run relationship between inflation and nominal interest raes in the 1990s by utilizing the Johansen-Juselius multivariate cointegration technique. The evidence supports the tax-adjusted form of Fisher hypothesis for three ASEAN countries, namely Singapore, Malaysia and Thailand. Thus, the assumption of a stable real interest rate appears to have empirical support for these low-inflation economies. We also demonstrate that inflation rate is both weakly and strongly exogenous in these three systems. However, the weak form of the hypothesis is decisively rejected for the inflation prone countries like the Philippines and Indonesia. In general, our results suggest that in a deregulated environments real interest rate is insulated from nominal shocks and money is neutral Penerbit Universiti Kebangsaan Malaysia 1999 Article PeerReviewed Hook Law, Siong and Boon Tan, Hui and Ahmad Zubaidi Baharumshah, (1999) Financial liberalization in ASEAN and the fisher hypothesis. Jurnal Ekonomi Malaysia, 33 . ISSN 0127-1962 http://www.ukm.my/~penerbit
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
description	This study examines the long-run relationship between inflation and nominal interest raes in the 1990s by utilizing the Johansen-Juselius multivariate cointegration technique. The evidence supports the tax-adjusted form of Fisher hypothesis for three ASEAN countries, namely Singapore, Malaysia and Thailand. Thus, the assumption of a stable real interest rate appears to have empirical support for these low-inflation economies. We also demonstrate that inflation rate is both weakly and strongly exogenous in these three systems. However, the weak form of the hypothesis is decisively rejected for the inflation prone countries like the Philippines and Indonesia. In general, our results suggest that in a deregulated environments real interest rate is insulated from nominal shocks and money is neutral
format	Article
author	Hook Law, Siong Boon Tan, Hui Ahmad Zubaidi Baharumshah,
spellingShingle	Hook Law, Siong Boon Tan, Hui Ahmad Zubaidi Baharumshah, Financial liberalization in ASEAN and the fisher hypothesis
author_facet	Hook Law, Siong Boon Tan, Hui Ahmad Zubaidi Baharumshah,
author_sort	Hook Law, Siong
title	Financial liberalization in ASEAN and the fisher hypothesis
title_short	Financial liberalization in ASEAN and the fisher hypothesis
title_full	Financial liberalization in ASEAN and the fisher hypothesis
title_fullStr	Financial liberalization in ASEAN and the fisher hypothesis
title_full_unstemmed	Financial liberalization in ASEAN and the fisher hypothesis
title_sort	financial liberalization in asean and the fisher hypothesis
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	1999
url	http://journalarticle.ukm.my/1357/ http://journalarticle.ukm.my/1357/
first_indexed	2023-09-18T19:33:07Z
last_indexed	2023-09-18T19:33:07Z
_version_	1777405093197381632

Financial liberalization in ASEAN and the fisher hypothesis

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