Evaluating The Effectiveness Of Monetary Versus Fiscal Policies In Malaysia Using Macroeconometric Approaches

The purpose of this thesis is to examine the roles of monetary and fiscal policies in achieving Malaysia's basic macroeconomic goals of price stability and long-term growth. This thesis is divided into two main parts. The first part employs nonlinear modelling techniques to investigate the nonl...

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Main Author:	Ismail, Siti Fatimah
Format:	Thesis
Language:	English
Published:	2022
Subjects:	QA1 Mathematics (General)
Online Access:	http://eprints.usm.my/59800/1/24%20Pages%20from%20SITI%20FATIMAH%20BINTI%20ISMAIL.pdf
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spelling	my-usm-ep.598002024-02-05T00:54:41Z Evaluating The Effectiveness Of Monetary Versus Fiscal Policies In Malaysia Using Macroeconometric Approaches 2022-09 Ismail, Siti Fatimah QA1 Mathematics (General) The purpose of this thesis is to examine the roles of monetary and fiscal policies in achieving Malaysia's basic macroeconomic goals of price stability and long-term growth. This thesis is divided into two main parts. The first part employs nonlinear modelling techniques to investigate the nonlinear effect of policy stances on GDP growth and inflation using Malaysian data from 1980Q1 to 2018Q1. The results of the STAR and TAR approaches reveal the existence of a nonlinear relationship. The results show that no single policy tool can lead to the policy objectives of high GDP growth and low inflation at once. Both STAR and TAR results evident that the fiscal tools of government expenditure, current account balance and debt are harmful to the economic growth and the impact on inflation is either negative or not significant. In terms of monetary policy, the policy rate is a less effective tool to stimulate GDP growth but is a better option to control or reduce inflation. Meanwhile, real effective exchange rate encourages GDP growth but it does not influence price level significantly. The STAR model is a preferred model in capturing the gradual threshold adjustment in economic variables. In the second part of the analysis, a macroeconometric model is developed to evaluate the performance of Malaysia's monetary and fiscal policies as well as to project different economic outcomes and scenarios through numerical simulations. 2022-09 Thesis http://eprints.usm.my/59800/ http://eprints.usm.my/59800/1/24%20Pages%20from%20SITI%20FATIMAH%20BINTI%20ISMAIL.pdf application/pdf en public phd doctoral Perpustakaan Hamzah Sendut Pusat Pengajian Sains Matematik
institution	Universiti Sains Malaysia
collection	USM Institutional Repository
language	English
topic	QA1 Mathematics (General)
spellingShingle	QA1 Mathematics (General) Ismail, Siti Fatimah Evaluating The Effectiveness Of Monetary Versus Fiscal Policies In Malaysia Using Macroeconometric Approaches
description	The purpose of this thesis is to examine the roles of monetary and fiscal policies in achieving Malaysia's basic macroeconomic goals of price stability and long-term growth. This thesis is divided into two main parts. The first part employs nonlinear modelling techniques to investigate the nonlinear effect of policy stances on GDP growth and inflation using Malaysian data from 1980Q1 to 2018Q1. The results of the STAR and TAR approaches reveal the existence of a nonlinear relationship. The results show that no single policy tool can lead to the policy objectives of high GDP growth and low inflation at once. Both STAR and TAR results evident that the fiscal tools of government expenditure, current account balance and debt are harmful to the economic growth and the impact on inflation is either negative or not significant. In terms of monetary policy, the policy rate is a less effective tool to stimulate GDP growth but is a better option to control or reduce inflation. Meanwhile, real effective exchange rate encourages GDP growth but it does not influence price level significantly. The STAR model is a preferred model in capturing the gradual threshold adjustment in economic variables. In the second part of the analysis, a macroeconometric model is developed to evaluate the performance of Malaysia's monetary and fiscal policies as well as to project different economic outcomes and scenarios through numerical simulations.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Ismail, Siti Fatimah
author_facet	Ismail, Siti Fatimah
author_sort	Ismail, Siti Fatimah
title	Evaluating The Effectiveness Of Monetary Versus Fiscal Policies In Malaysia Using Macroeconometric Approaches
title_short	Evaluating The Effectiveness Of Monetary Versus Fiscal Policies In Malaysia Using Macroeconometric Approaches
title_full	Evaluating The Effectiveness Of Monetary Versus Fiscal Policies In Malaysia Using Macroeconometric Approaches
title_fullStr	Evaluating The Effectiveness Of Monetary Versus Fiscal Policies In Malaysia Using Macroeconometric Approaches
title_full_unstemmed	Evaluating The Effectiveness Of Monetary Versus Fiscal Policies In Malaysia Using Macroeconometric Approaches
title_sort	evaluating the effectiveness of monetary versus fiscal policies in malaysia using macroeconometric approaches
granting_institution	Perpustakaan Hamzah Sendut
granting_department	Pusat Pengajian Sains Matematik
publishDate	2022
url	http://eprints.usm.my/59800/1/24%20Pages%20from%20SITI%20FATIMAH%20BINTI%20ISMAIL.pdf
_version_	1794024058300399616

Evaluating The Effectiveness Of Monetary Versus Fiscal Policies In Malaysia Using Macroeconometric Approaches

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