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Tracing the Monetary Policy Reaction Functions for the Case of a Small Developing Economy Author info | Abstract | Publisher info | Download info | Related research | Statistics Arief Ramayandi () (Department of Economics, Padjadjaran University)
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The paper outlines some alternative methodologies for estimating the monetary policy reaction function. It also discusses some of the advantages and disadvantages for each available alternative to be implemented in the case of small developing economies. Additionally, a simple case study using Indonesia’s data set was carried out. The result indicates that an estimated simple backward-looking reaction function is capable of capturing the path of policy instrument variable quite well.
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Paper provided by Department of Economics, Padjadjaran University in its series Working Papers in Economics and Development Studies (WoPEDS) with number
200301.
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Length: 22 pages
Date of creation: Oct 2003Date of revision:
Oct 2003Handle: RePEc:unp:wpaper:200301Contact details of provider: Postal: Jalan Cimandiri No.6, Bandung 40115 Phone: (062)022-4204510 Fax: (062)022-4204510 Email: Web page: http://www.lp3e-unpad.org More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Arief Anshory Yusuf).
Keywords: Monetary policy ; small open economy ; Find related papers by JEL classification: E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
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