Tests of different monetary aggregates for the monetary models of the exchange rate in five ASEAN countries
Abstract:This study examines the usefulness of divisia money, relative to simple sum money, for exchange rate modelling in a period of rapid financial deregulation. This comparison is conducted using the monetary model of the exchange rate. In the long-run modelling, the divisia money is significantly superior to simple sum money in the case of Malaysia and the Philippines while indifferent for Indonesia, Singapore and Thailand.
Document Type: Research Article
Affiliations: Faculty of Economics and Management, Department of Economics, Universiti Putra Malaysia, Selangor, Malaysia
Publication date: June 1, 2009