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Monetary Policy Transmission Through the Rate Channel in Some Countries in ASEAN

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  • Nguyen Thi Quynh Dung
  • Pham Thi Ha An

Abstract

Using a quantitative regression of table data through FEM and REM models, the study has measured the extent and direction of exchange rate impacts on the economic growth of five ASEAN countries namely, Vietnam, Indonesia, Singapore, Philippines, Malaysia, in the period of 1985-2015. The estimation results show that for every 1% rise in the real exchange rate, the multilateral force will have a positive impact, since the speed of economic growth of five countries increased by 2.09%. This result is consistent with some previous studies, especially in some developing countries. Further, the thesis has assessed the exchange rate policy in Vietnam and analyzed the situation. As a result, the authors have made some recommendations for exchange rate policy. The recommendations focus on the State’s intervention in adjusting the exchange rate and pay attention to the real exchange rate for policy evaluation. The recommendations of the thesis are consistent with the actual situation in the five ASEAN countries in order to stabilize economic growth.

Suggested Citation

  • Nguyen Thi Quynh Dung & Pham Thi Ha An, 2020. "Monetary Policy Transmission Through the Rate Channel in Some Countries in ASEAN," Applied Economics and Finance, Redfame publishing, vol. 7(2), pages 57-66, March.
    • Handle: RePEc:rfa:aefjnl:v:7:y:2020:i:2:p:57-66
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    References listed on IDEAS

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    1. Paulo Vaz & Werner Baer, 2014. "Real exchange rate and manufacturing growth in Latin America," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 23(1), pages 1-17, December.
    2. Ghura, Dhaneshwar & Grennes, Thomas J., 1993. "The real exchange rate and macroeconomic performance in Sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 42(1), pages 155-174, October.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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