Furuoka, Fumitaka and Wong, Hock Tsen and Chong, Hui Ing and Ting, Siew King (2007) Domestic Macroeconomic Adjustment to Oil Price Shocks Under Different Exchange Rate Regimes in Malaysia. Malaysian Management Journal (MMJ), 11 (1&2). pp. 1-10. ISSN 0128-6226

Preview

PDF - Published Version Available under License Attribution 4.0 International (CC BY 4.0). Download (1MB) | Preview

Abstract

This study examined the insulation properties of flexible exchange rate regime and fixed exchange rate regime in response to the oil price shocks in Malaysia. A monthly time series data for the period 1980- 2005 was used to examine whether the response of output, exchange rate and price levels to the oil price shocks were different across the exchange rate regimes. For this purpose, this study employed the structural vector autoregressive model. Empirical results indicated that the short-run output responses to the oil price shocks are smoother under the flexible exchange rate regime compared to the situation under the fixed exchange rate regime.

Item Type:	Article
Uncontrolled Keywords:	Exchange rate regimes; oil price; structural VAR modeling; Malaysia
Subjects:	H Social Sciences > HC Economic History and Conditions
Divisions:	College of Business
Depositing User:	Mrs Nurin Jazlina Hamid
Date Deposited:	24 Mar 2024 08:43
Last Modified:	24 Mar 2024 08:43
URI:	https://repo.uum.edu.my/id/eprint/30634

Actions (login required)

View Item