UPM Institutional Repository

Monetary Conditions Index in Singapore.


Poon, Wai Ching and Habibullah, Muzafar Shah and Baharumshah, Ahmad Zubaidi and Mohamed, Azali (2008) Monetary Conditions Index in Singapore. Icfai University of Journal of Applied Economics, 7 (4). pp. 6-22. ISSN 0972-6861


This paper looks at bound test approach for cointegration analysis, to verify the stability of Singaporean real Gross Domestic Product (GDP), to construct the Monetary Conditions Index (MCI) over the quarterly period 1981:1-2004:4. The bounds test confirms a long-run equilibrium relationship between the output and its determinants, namely short-term and long-term interest rate, exchange rate, claims on private sector, and share prices. Results reveal evidence of cointegration between these variables in both short and long run. As such, this has further verified the stability of the Singaporean output demand function to construct the Monetary Conditions Index (MCI), and how the Monetary Authority of Singapore (MAS) responds to exchange rate changes and whether the policy responses differ. The study has evidently showed that the actual monetary stance reacts corresponding to the MCIs.

Download File

PDF (Abstract)
Monetary Conditions Index in Singapore.pdf

Download (83kB) | Preview

Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Publisher: ICFAI University Press
Keywords: Monetary Conditions Index (MCI); Singapore; Exchange rate.
Depositing User: Emelda Mohd Hamid
Date Deposited: 07 Feb 2014 03:57
Last Modified: 29 Oct 2015 00:20
URI: http://psasir.upm.edu.my/id/eprint/15718
Statistic Details: View Download Statistic

Actions (login required)

View Item View Item