The Role of Monetary Policy in Macroeconomic Volatility of Association of Southeast Asian Nations-4 Countries against Oil Price Shock over Time

Volume: 5 Number: 3 September 1, 2015
  • Fatemeh Razmi
  • Azali Mohamed
  • Lee Chin
  • Muzafar Shah Habibullah
International Journal of Energy Economics and Policy Cover
International Journal of Energy Economics and Policy
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The Role of Monetary Policy in Macroeconomic Volatility of Association of Southeast Asian Nations-4 Countries against Oil Price Shock over Time

Abstract

This paper examines the impact of oil price, as a cause of economic crisis, and monetary policy through the four known channels of monetary transmission mechanism (interest rate, exchange rate, domestic credit, and stock price). Using a structural VAR model based on monthly data from 2002 to 2013 for ASEAN-4 countries, oil price and monetary transmission channels are compared pre- and post-crisis. The result indicates oil price remains an important factor in explaining price volatility, even though oil price has a weaker effect compared to a stronger effect of monetary transmission mechanism on prices. Stock price for Malaysia and domestic credit for the three others can affect the prices against oil price shock. Unlike prices, the output of all countries except Thailand is more affected by oil price post-crisis compared to pre-crisis. Different monetary transmission tools affecting industrial production are compared for the four countries.

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Primary Language

English

Subjects

-

Journal Section

-

Authors

Fatemeh Razmi This is me

Azali Mohamed This is me

Lee Chin This is me

Muzafar Shah Habibullah This is me

Publication Date

September 1, 2015

Submission Date

September 1, 2015

Acceptance Date

-

Published in Issue

Year 2015 Volume: 5 Number: 3

IZ

https://izlik.org/JA94KB89TZ

Cite

RIS / Bibtex
APA
Razmi, F., Mohamed, A., Chin, L., & Habibullah, M. S. (2015). The Role of Monetary Policy in Macroeconomic Volatility of Association of Southeast Asian Nations-4 Countries against Oil Price Shock over Time. International Journal of Energy Economics and Policy, 5(3), 731-737. https://izlik.org/JA94KB89TZ
AMA
1.Razmi F, Mohamed A, Chin L, Habibullah MS. The Role of Monetary Policy in Macroeconomic Volatility of Association of Southeast Asian Nations-4 Countries against Oil Price Shock over Time. IJEEP. 2015;5(3):731-737. https://izlik.org/JA94KB89TZ
Chicago
Razmi, Fatemeh, Azali Mohamed, Lee Chin, and Muzafar Shah Habibullah. 2015. “The Role of Monetary Policy in Macroeconomic Volatility of Association of Southeast Asian Nations-4 Countries Against Oil Price Shock over Time”. International Journal of Energy Economics and Policy 5 (3): 731-37. https://izlik.org/JA94KB89TZ.
EndNote
Razmi F, Mohamed A, Chin L, Habibullah MS (September 1, 2015) The Role of Monetary Policy in Macroeconomic Volatility of Association of Southeast Asian Nations-4 Countries against Oil Price Shock over Time. International Journal of Energy Economics and Policy 5 3 731–737.
IEEE
[1]F. Razmi, A. Mohamed, L. Chin, and M. S. Habibullah, “The Role of Monetary Policy in Macroeconomic Volatility of Association of Southeast Asian Nations-4 Countries against Oil Price Shock over Time”, IJEEP, vol. 5, no. 3, pp. 731–737, Sept. 2015, [Online]. Available: https://izlik.org/JA94KB89TZ
ISNAD
Razmi, Fatemeh - Mohamed, Azali - Chin, Lee - Habibullah, Muzafar Shah. “The Role of Monetary Policy in Macroeconomic Volatility of Association of Southeast Asian Nations-4 Countries Against Oil Price Shock over Time”. International Journal of Energy Economics and Policy 5/3 (September 1, 2015): 731-737. https://izlik.org/JA94KB89TZ.
JAMA
1.Razmi F, Mohamed A, Chin L, Habibullah MS. The Role of Monetary Policy in Macroeconomic Volatility of Association of Southeast Asian Nations-4 Countries against Oil Price Shock over Time. IJEEP. 2015;5:731–737.
MLA
Razmi, Fatemeh, et al. “The Role of Monetary Policy in Macroeconomic Volatility of Association of Southeast Asian Nations-4 Countries Against Oil Price Shock over Time”. International Journal of Energy Economics and Policy, vol. 5, no. 3, Sept. 2015, pp. 731-7, https://izlik.org/JA94KB89TZ.
Vancouver
1.Fatemeh Razmi, Azali Mohamed, Lee Chin, Muzafar Shah Habibullah. The Role of Monetary Policy in Macroeconomic Volatility of Association of Southeast Asian Nations-4 Countries against Oil Price Shock over Time. IJEEP [Internet]. 2015 Sep. 1;5(3):731-7. Available from: https://izlik.org/JA94KB89TZ