The Impact of Monetary Policy on Economic Growth in Cambodia: Bayesian Approach

Sean, Monorith

doi:10.31039/jomeino.2019.3.2.2

Cited by 10 publications

(4 citation statements)

References 6 publications

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“…The findings revealed a positive correlation between money supply, regulated by the National Bank of Cambodia, and GDP. Conversely, other macroeconomic indicators such as interest rate, exchange rate, and foreign reserve exhibited a negative influence on GDP (Sean, 2019;Thongtawee, 2016).…”

Section: Introductionmentioning

confidence: 95%

The Effectiveness of Monetary Policy in the Association of Southeast Asian Nations

Song,

Lim

2024

Intl. J. Rel.

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The aim of this research is to examine how monetary aggregates affect economic growth in the ASEAN region. To achieve this objective, a Panel VAR model is utilized, incorporating five key macroeconomic indicators: gross domestic product, consumer price index, foreign exchange, interest rate, and money supply. The study focuses on nine ASEAN member countries, namely Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam, spanning from 2012 to 2022. The Generalized Method of Moments (GMM) with the mean-differencing method or Helmert procedure is employed as the estimated method for the model. The findings of this study demonstrate that an increase in money supply by one lag has a significant positive impact on the gross domestic product at a 1% level of significance. This suggests that monetary policy plays a crucial role in promoting economic growth among the member countries of ASEAN. When it comes to the forecast error variance decomposition, the fluctuations in economic growth within ASEAN can mainly be attributed to the fluctuations in the consumer price index (34.85%), interest rate (8.84%), foreign exchange (5.92%), and money supply (2.24%). It is worth noting that the variations in all these variables in the system are primarily explained by the fluctuations in the general price level: 34.85% for gross domestic product, 35.24% for foreign exchange, 34.15% for interest rate, and 34.95% for money supply.

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Section: Introductionmentioning

confidence: 95%

The Effectiveness of Monetary Policy in the Association of Southeast Asian Nations

Song,

Lim

2024

Intl. J. Rel.

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“…The Monetary Policy Committee under the auspices of the Central Bank through the manipulation of the monetary instruments aims to achieve some macroeconomic objectives such as full employment (Owolabi and Adegbite, 2014), price stability, balance of payment equilibrium, external balance, equality in income distribution and rapid economic growth (Nasko, 2016) which consequently improves the economic and social welfare of the people. By controlling the behaviours of money and credit, government through the Central Bank is able to influence savings and investment, Gross National Product, the rate of inflation and the balance of payments (Sean, 2019). Therefore, it suffices to say that the Central Bank since its inception in 1958 is the major determinant of supply of money, which could be narrow or broad money supply.…”

Section: Monetary Policymentioning

confidence: 99%

“…Monetary policy variables such interest rates, money supply, exchange rate channels, open market operations (OMO) (Nasko, 2016;Sean, 2019), liquidity ratio, cash reserve ratio and treasury securities (Ikechukwu et al, 2016) exerts significant effect on macroeconomic aggregates including but not limited to price stability (Nasko, 2016;Owolabi and Adegbite, 2014). For example, according to Adeoye and Saibu (2014), fluctuations in exchange rate is one of the leading sources of economic instability especially in developing countries.…”

Section: Monetary Policymentioning

confidence: 99%

The monetary policy and price stability nexus: The Nigerian case (1981-2016)

Oladele¹,

Deborah²

2020

Res. J. Bus. Econ. Manag.

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The study evaluated the effects of monetary policy on price stability in Nigeria for the period 1981-2016. The consumer price index was used as the dependent variable while money supply, interest rate, exchange rate, Gross Domestic Product (GDP) and treasury bill rates were the independent variables. The research made use of secondary data obtained from Central Bank of Nigeria Statistical Bulletin and World Bank Development Indicators. The study employed Auto Regressive Distributive Lag (ARDL). The unit root test showed that all the time series data were not stationary series. The result showed in the short-run and long-run, exchange rate, money supply, GDP and open market operations have significant effects on price stability in Nigeria while interest rate is significant only in the short-run. Based on the findings, the study recommended among others, that Central Bank of Nigeria increase interest rates during inflation in order to control money supply and consequently inflation. Government should take policy actions swiftly so as to reduce lag problems. Also, monetary policy alone cannot be used to maintain price stability. It should, therefore, be supplemented by fiscal measures, non-monetary and non-fiscal measures.

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“…The effectiveness of monetary policy in output stabilization and controlling inflation remains an ongoing discourse (Sean, 2019; Chaudhry, Qamber and Farooq 2012). In emerging market economies where the financial market is at a developing stage, monetary policy remains an option as a stabilization tool (Chipote & Makhetha-Kosi 2014) towards enhancing aggregate output.…”

Section: Introductionmentioning

confidence: 99%

An Assessment of the Impact of Monetary Policy on Economic Growth in Nigeria: Toda-Yamamoto Approach

David¹,

Ita²,

Eyo³

et al. 2022

IJRISS

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This study interrogated the impact of monetary policy on economic growth in Nigeria using annual time series data from 1981 to 2020. The paper used the growth rate of gross domestic product (GRGDP) as the endogenous variable, while, broad money supply (MS2), monetary policy rate (MPR), Inflation (INFL), liquidity ratio (LDQR) and exchange rate (EXCH) were the exogenous variables and proxies for monetary policy. Data were obtained from the Central Bank of Nigeria’s Statistical Bulletin of various years and World Bank National Account Data. The study used descriptive statistics, performed a unit root test using Augmented Dickey-Fuller, Autoregressive Distributed Lag (ARDL) Bound test, and to test for causality, Toda Yamamoto was deployed. Finally, the Toda Yamamoto Causality test revealed that all the exogenous variables had bi-directional causality with economic growth except for the exchange rate that had uni-directional causality with economic growth. In the light of the findings, the study recommends that Broad Money Supply (MS2) should be adequately managed and manipulated to achieve the needy growth, in line with pursued monetary policy stance of the monetary authority. Also, the monetary authority and the government should vigorously pursue policies that would increase financial inclusion in Nigeria as it would enhance the effectiveness of the monetary policy.

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The Impact of Monetary Policy on Economic Growth in Cambodia: Bayesian Approach

Cited by 10 publications

References 6 publications

The Effectiveness of Monetary Policy in the Association of Southeast Asian Nations

The Effectiveness of Monetary Policy in the Association of Southeast Asian Nations

The monetary policy and price stability nexus: The Nigerian case (1981-2016)

An Assessment of the Impact of Monetary Policy on Economic Growth in Nigeria: Toda-Yamamoto Approach

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