P -Star, Exchange Rate Regime and Inflation Determination: The Malaysian case
| Autor: | Michael Meow-Chung Yap |
|---|---|
| Rok vydání: | 2002 |
| Předmět: |
Inflation
Star (game theory) media_common.quotation_subject Geography Planning and Development Monetary policy Monetary economics Development Exchange-rate regime Quantity theory of money Balance of payments Political Science and International Relations Economics Price of stability STAR model media_common |
| Zdroj: | Journal of the Asia Pacific Economy. 7:379-407 |
| ISSN: | 1469-9648 1354-7860 |
| DOI: | 10.1080/1354786022000007898 |
| Popis: | Introduced in 1989, the P -star model draws on the quantity theory of money. Money plays a central role in determining the long-termprice level. The model has been applied to various industrialized countries. Its advantage is in providing a consistent framework for analysing short-term monetary policy setting against the prospects of achieving a longer-term price stability objective. Hence its adoption greatly assists policy-makers in overcoming the 'time-inconsistency' problem by taking a forward-looking approach to policy. This article analyses the relevance of the P -star model to the Malaysian experience. An extension to the original P -star model, following a generalized monetary approach to the balance of payments and which allows the evaluation of the exchange rate regime's influence on inflation, is also tested. It is found that the original P -star model fits the Malaysian case well although the extended model cannot be rejected. The results strongly support the view that inflation in Malaysia is... |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|