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dc.contributor.authorMiles, William
dc.contributor.authorSchreyer, Sam
dc.identifier.citationMiles, William; Schreyer, Sam. 2012. Is monetary policy non-linear in Indonesia, Korea, Malaysia, and Thailand? A quantile regression analysis. Asian-Pacific Economic Literature, v.26 no.2 pp.155-166en_US
dc.descriptionClick on the DOI link to access the article (may not be free.)en_US
dc.description.abstractThere is a growing literature on the linearity or otherwise of monetary policy in industrialised countries. The investigations have revealed that the reactions of central banks to economic variables depend on the level of the variables, confirming the non-linearity of monetary policy in these countries. However, research into whether monetary policy is non-linear in emerging markets has been hampered by the lack of data, as a stable, modern monetary regime has existed in emerging markets for only a relatively short time. Employing quantile regression, which is not as constrained as other regression methods by the shortness of time series, we investigate the non-linearity of monetary policy in four emerging Asian nations: Indonesia, Korea, Malaysia, and Thailand. Our results indicate that monetary policy in all four is non-linear. All display a hump-shaped response to inflation across the quantilespolicy becomes tighter, going from lower to higher quantiles, reaches a peak, and then becomes looser. These results are similar to those found previously in Japan, and likely arise from a desire to limit exchange rate appreciation, as all four countries depend heavily on exports.en_US
dc.relation.ispartofseriesAsian-Pacific Economic Literature;v.26 no.2
dc.subjectAbsolute Deviations Estimatorsen_US
dc.subjectUnited Statesen_US
dc.subjectTaylor Rulesen_US
dc.titleIs monetary policy non-linear in Indonesia, Korea, Malaysia, and Thailand? A quantile regression analysis.en_US
dc.description.versionPeer revieweden
dc.rights.holder© 2012 Crawford School of Public Policy, The Australian National University and Wiley Publishing Asia Pty Ltden

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