Inter-temporal Linkages of Economic Activity, Stock Prices and Monetary Policy in Malaysia

摘要

This paper analyses the linkages between stock prices, real interest rates and real money stock for two time periods: first, prior to the Asian financial crisis, when the Malaysian ringgit was a floating currency; and second, after the adoption of a pegged ringgit. Although the variables are linked in both time periods, the nature of the linkages changes. As an example, there is evidence of a loss of resilience in the real sector after the East Asian financial crisis.