On the Long-Run Monetary Neutrality: Evidence from the SEACEN Countries

Puah, Chin-Hong and Muzafar Shah, Habibullah and Shazali, Abu Mansor (2008) On the Long-Run Monetary Neutrality: Evidence from the SEACEN Countries. Working Paper. Universiti Malaysia Sarawak, (UNIMAS).

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Abstract

This paper tests the long run neutrality (LRN) and long run superneutrality (LRSN) propositions using annual observation from 10 member countries of the South East Asian Central Banks (SEACEN) Research and Training Centre.The Fisher and Seater (1993) methodology is applied to do the task. Special attention has been given in identifying the number of unit root and cointegrating vector, as a meaningful LRN (LRSN) test is critically depends on such properties. Empirical results reveal that LRN can be deviated from the case of Asian developing economies. In particular, monetary expansion seems to have long run positive effect on real output in the economies of Indonesia, Taiwan and Thailand. However, LRSN is neither fail or not addressable in our study.

Item Type: Monograph (Working Paper)
Uncontrolled Keywords: UNIMAS, 2008, Neutrality and superneutrality of money, sequential unit root test, SEACEN, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HG Finance
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: Karen Kornalius
Date Deposited: 16 Jun 2014 03:27
Last Modified: 12 Apr 2016 02:22
URI: http://ir.unimas.my/id/eprint/3228

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