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Inflation targeting and unemployment rate in Malaysia: The threshold regression approach

Abstract: The first concern is a matter of theory the Phillips curve which show the trade-off relationship between the inflation and unemployment rates. Hence, this study aims to estimate threshold effects using the threshold autoregressive model proposed by Hansen (2000). In the context of Malay...

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Main Authors: Taasim, Shairilizwan, Teruki, Neilson, Wong, Sing Yun, Pinjaman, Saizal
Format: Article
Published: Enriched Publications 2022
Online Access:http://psasir.upm.edu.my/id/eprint/101881/
http://www.eel.my100megs.com/volume-21-number-12.htm
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spelling my.upm.eprints.1018812024-02-29T07:17:58Z http://psasir.upm.edu.my/id/eprint/101881/ Inflation targeting and unemployment rate in Malaysia: The threshold regression approach Taasim, Shairilizwan Teruki, Neilson Wong, Sing Yun Pinjaman, Saizal Abstract: The first concern is a matter of theory the Phillips curve which show the trade-off relationship between the inflation and unemployment rates. Hence, this study aims to estimate threshold effects using the threshold autoregressive model proposed by Hansen (2000). In the context of Malaysia, we employed the monthly data from 2015 to 2022 to address the relationship between inflation and the unemployment rate. Specifically, we found difference with two perspectives on the relationship. The most interesting finding of this study is the higher inflation with existence of the Phillips curve in the short run. Therefore, a lower inflation rate results in higher unemployment rate relationship. Enriched Publications 2022 Article PeerReviewed Taasim, Shairilizwan and Teruki, Neilson and Wong, Sing Yun and Pinjaman, Saizal (2022) Inflation targeting and unemployment rate in Malaysia: The threshold regression approach. Empirical Economics Letters, 21 (12). pp. 33-40. ISSN 1681-8997 http://www.eel.my100megs.com/volume-21-number-12.htm
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
description Abstract: The first concern is a matter of theory the Phillips curve which show the trade-off relationship between the inflation and unemployment rates. Hence, this study aims to estimate threshold effects using the threshold autoregressive model proposed by Hansen (2000). In the context of Malaysia, we employed the monthly data from 2015 to 2022 to address the relationship between inflation and the unemployment rate. Specifically, we found difference with two perspectives on the relationship. The most interesting finding of this study is the higher inflation with existence of the Phillips curve in the short run. Therefore, a lower inflation rate results in higher unemployment rate relationship.
format Article
author Taasim, Shairilizwan
Teruki, Neilson
Wong, Sing Yun
Pinjaman, Saizal
spellingShingle Taasim, Shairilizwan
Teruki, Neilson
Wong, Sing Yun
Pinjaman, Saizal
Inflation targeting and unemployment rate in Malaysia: The threshold regression approach
author_facet Taasim, Shairilizwan
Teruki, Neilson
Wong, Sing Yun
Pinjaman, Saizal
author_sort Taasim, Shairilizwan
title Inflation targeting and unemployment rate in Malaysia: The threshold regression approach
title_short Inflation targeting and unemployment rate in Malaysia: The threshold regression approach
title_full Inflation targeting and unemployment rate in Malaysia: The threshold regression approach
title_fullStr Inflation targeting and unemployment rate in Malaysia: The threshold regression approach
title_full_unstemmed Inflation targeting and unemployment rate in Malaysia: The threshold regression approach
title_sort inflation targeting and unemployment rate in malaysia: the threshold regression approach
publisher Enriched Publications
publishDate 2022
url http://psasir.upm.edu.my/id/eprint/101881/
http://www.eel.my100megs.com/volume-21-number-12.htm
_version_ 1793157019124891648
score 13.211869

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