HOW IS THE RATE OF INFLATION AND MONEY SUPPLY IN THAILAND?
Abstract
Understanding the money supply process is crucial in that policymakers and related economic agents will know whether or not the central bank can conduct sound monetary policy. Most previous studies employ linear cointegration tests, which assume that the adjustment towards the long-run equilibrium is symmetric. However, when this long-run relationship is not linear, the results can be misleading. The type of research used is library research or literature study where researchers rely on various literatures to obtain research data and use a qualitative approach because the data produced is in the form of words or descriptions. Between money supply and inflation is generally positive, especially over the long term. An increase in the money supply tends to lead to higher inflation if it outpaces economic growth.
References
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Vimolsiri, P. and A. Hirunraengchok. 2004. “Structural Vector Autoregressions: The Case of Thailand.” Presented at the International Symposium on Forecasting, July 4-7, 2004, Sydney.
Bernanke, B. 1986. “Alternative Explanations of the Money-Income Correlation.” Carnegie-Rochester Conference Series on Public Policy 25(1):49-59.
Bernanke, B. and A. Blinder. 1988. “Credit, Money, and Aggregate Demand.” The American Economic Review 78(2):435-439.
——. 1992. “The Federal Funds Rate and the Channels of Monetary Transmission.” The American Economic Review 82(4):901-921.
Bernanke, B. and M. Gertler. 1995. “Inside the Black Box: The Credit Channel of Monetary Policy Transmission.” Journal of Economic Perspectives 9(4):27-48.
Charoenseang, J. and P. Manakit. 2007a. “Financial Crisis and Restructuring in Thailand.” Pp. 83-106 in Economic Dynamism of Asia in the New Millenium: From the Asian
Crisis to a New Stage of Growth, edited by Y. Shimizu. Hackensack, N.J. and Singapore: World Scientific.
——. 2007b. “Thai Monetary Policy Transmission in an Inflation Targeting Era.” Journal of Asian Economics 18(1):144-157.
Cushman, D. O. and T. Zha. 1997. “Identifying Monetary Policy in a Small Open Economy Under Flexible Exchange Rates.” Journal of Monetary Economics 39(3):433-448.
Disyatat, P. and P. Vongsinsirikul. 2003. “Monetary Policy and the Transmission Mechanism in Thailand.” Journal of Asian Economics 14(3):389-418. Dungey, M. and A. Pagan. 2000. “A Structural VAR Model of the Australian Economy.” The Economic Record 76(235):321-342.
Moleong, Lexy J. (2007). Metodologi Penelitian Kualitatif Edisi Revisi. Bandung: Remaja Rosdakarya.
Nakornthab, D. 2009. “Thailand’s Monetary Policy Since the 1997 Crisis.” Kobe University Economic Review 55:75-88.
Patrawimolpon, P., T. Rattanalankar, C. Charumilind, and P. Ngamchant. 2001. A Structural Vector Autoregressive Model of Thailand: A Test for Structural Shifts. Retrieved http://econ.tu.ac.th/archan/RANGSUN/EC%20460/EC%20460%20Readings/Thai%20Economy/Structure%20of%20Thai%20Economy/Structural%20Vector%20Autoregressive%20Model%20of%20Thai.pdf).
Prasertnukul, W., D. Kim, and M. Kakinaka. 2010. “ExchangeRates, Price Levels, and Inflation Targeting: EvidenceFrom Asian Countries.” Japan and the World Economy 22(3):173-182.
Purwanto. (2008). Metodologi Penelitian Kuantitatif Untuk Psikologi dan Pendidikan. Yogyakarta: Pustaka Pelajar.
Raghavan, M., P. Silvapulle, and G. Athanasopoulos. 2012. “Structural VAR Models for Malaysian Monetary Policy Analysis During the Pre- and Post-1997 Asian Crisis Periods.” Applied Economics 44(29):3841-3856. Sek, S. K. 2009. “Interactions Between Monetary Policy and Exchange Rate in Inflation Targeting Emerging Countries: The Case of Three East Asian Countries.” International Journal of Economics and Finance 1(2):27-44.
Rangkuty, D. M., & Hidayat, M. (2021). Does Foreign Debt have an Impact on Indonesia's Foreign Exchange Reserves?. Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi, 16(1), 85-93.
Sugiyono. (2012). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta.
Sims, C. A. 1986. “Are Forecasting Models Usable for Policy Analysis?” Quarterly Review, Federal Reserve Bank of Minneapolis 2-16. Retrieved (https://www.minneapolisfed.org/research/qr/qr1011.pdf).
Taylor, J. B. 1995. “The Monetary Transmission Mechanism: An Empirical Framework.” Journal of Economic Perspectives 9(4):11-26.
Vimolsiri, P. and A. Hirunraengchok. 2004. “Structural Vector Autoregressions: The Case of Thailand.” Presented at the International Symposium on Forecasting, July 4-7, 2004, Sydney.
Published
2022-11-29
How to Cite
ASENGBARAMAE, Rowiyah.
HOW IS THE RATE OF INFLATION AND MONEY SUPPLY IN THAILAND?.
Proceeding International Conference of Science Technology and Social Humanities, [S.l.], v. 1, p. 652-658, nov. 2022.
Available at: <https://jurnal.pancabudi.ac.id/index.php/icesshi/article/view/4811>. Date accessed: 21 dec. 2024.
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Articles
