Financial Disintermediation in the 1990s : Implications on Monetary Policy in Malaysia

DOI IR (HANDLE) Open Access

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Description

The increased financial disintermediation that characterizes the Malaysia's financial system since the early 1990s has contributed towards changes in the dynamics of monetary transmission mechanism. Using quarterly data from 1980: 1 to 2005: 4, we found a greater effectiveness of monetary policy during the pre-1990:3 period, but the post-1990:3 period poses much difficulty for the conduct of monetary policy. Innovations in the financial market appeared to have led to lower output variability. Further, when the real interest rate is made a function of financial disintermediation, the real interest rate appeared to have lost its significance in influencing real variables in the post-1990: 3 period. This study did not, however, find evidence in support of the significance of the real interest rate in affecting real variables through the direct financing channel via the capital market.

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Details 詳細情報について

  • CRID
    1390290699842519680
  • NII Article ID
    110007629926
  • NII Book ID
    AA00207547
  • DOI
    10.15057/17464
  • HANDLE
    10086/17464
  • ISSN
    0018280x
    0018280X
  • Text Lang
    en
  • Article Type
    departmental bulletin paper
  • Data Source
    • JaLC
    • IRDB
    • CiNii Articles
    • OpenAIRE
  • Abstract License Flag
    Allowed

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