Kejutan Monetari, Lencongan Pariti Faedah Tak Terlindung dan Akaun Semasa

Pengaruh Peletakan Harga Antarabangsa

Translated title of the contribution: Monetary shock,uncovered interest parity deviation and current account: The influence of international pricing

Noreha Halid, Noor Azlan Ghazali, Izani Ibrahim, Abd. Ghafar Ismail, Mansor Jusoh

Research output: Contribution to journalArticle

Abstract

This study presents a general equilibrium model to explore the impact of international pricing practices on the behavior of current account. This study identifies the current account response towards monetary and uncovered interest parity (UlP) shocks under the environment of different pricing approaches. The model shows the pricing practices by exporters highly influence the impact of both monetary and UlP shocks on current account. However, the degree of current account response depends on the intra- and inter-temporal consumption substitution elasticities and interest rate elasticity of money demand. The strength of the UIP shock through exchange rate on current accounts is highly influenced by the interest rate elasticity of money demand. In contrast, the UIP direct shock on current account is not affected by both international pricing practices and consumer's sensitivity towards consumption and interest rate. The study extends the existing current account research by proving the importance of UlP deviation, international pricing practices and consumer's preferences in influencing the behavior of current account. It also suggests the policy makers to consider in those variables in formulating their current account policies.

Original languageUndefined/Unknown
Pages (from-to)3-16
Number of pages14
JournalJurnal Pengurusan
Volume33
Publication statusPublished - Dec 2011

Fingerprint

Pricing
Monetary shocks
Uncovered interest parity
Current account
Deviation
Interest rates
Elasticity
Money demand
Exchange rates
Exporters
Politicians
Substitution
Consumer preferences
General equilibrium model

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Accounting
  • Business and International Management

Cite this

Kejutan Monetari, Lencongan Pariti Faedah Tak Terlindung dan Akaun Semasa : Pengaruh Peletakan Harga Antarabangsa. / Halid, Noreha; Ghazali, Noor Azlan; Ibrahim, Izani; Ismail, Abd. Ghafar; Jusoh, Mansor.

In: Jurnal Pengurusan, Vol. 33, 12.2011, p. 3-16.

Research output: Contribution to journalArticle

@article{7ffde3520e59479ba9e575b96d253685,
title = "Kejutan Monetari, Lencongan Pariti Faedah Tak Terlindung dan Akaun Semasa: Pengaruh Peletakan Harga Antarabangsa",
abstract = "This study presents a general equilibrium model to explore the impact of international pricing practices on the behavior of current account. This study identifies the current account response towards monetary and uncovered interest parity (UlP) shocks under the environment of different pricing approaches. The model shows the pricing practices by exporters highly influence the impact of both monetary and UlP shocks on current account. However, the degree of current account response depends on the intra- and inter-temporal consumption substitution elasticities and interest rate elasticity of money demand. The strength of the UIP shock through exchange rate on current accounts is highly influenced by the interest rate elasticity of money demand. In contrast, the UIP direct shock on current account is not affected by both international pricing practices and consumer's sensitivity towards consumption and interest rate. The study extends the existing current account research by proving the importance of UlP deviation, international pricing practices and consumer's preferences in influencing the behavior of current account. It also suggests the policy makers to consider in those variables in formulating their current account policies.",
author = "Noreha Halid and Ghazali, {Noor Azlan} and Izani Ibrahim and Ismail, {Abd. Ghafar} and Mansor Jusoh",
year = "2011",
month = "12",
language = "Undefined/Unknown",
volume = "33",
pages = "3--16",
journal = "Jurnal Pengurusan",
issn = "0127-2713",
publisher = "Penerbit Universiti Kebangsaan Malaysia",

}

TY - JOUR

T1 - Kejutan Monetari, Lencongan Pariti Faedah Tak Terlindung dan Akaun Semasa

T2 - Pengaruh Peletakan Harga Antarabangsa

AU - Halid, Noreha

AU - Ghazali, Noor Azlan

AU - Ibrahim, Izani

AU - Ismail, Abd. Ghafar

AU - Jusoh, Mansor

PY - 2011/12

Y1 - 2011/12

N2 - This study presents a general equilibrium model to explore the impact of international pricing practices on the behavior of current account. This study identifies the current account response towards monetary and uncovered interest parity (UlP) shocks under the environment of different pricing approaches. The model shows the pricing practices by exporters highly influence the impact of both monetary and UlP shocks on current account. However, the degree of current account response depends on the intra- and inter-temporal consumption substitution elasticities and interest rate elasticity of money demand. The strength of the UIP shock through exchange rate on current accounts is highly influenced by the interest rate elasticity of money demand. In contrast, the UIP direct shock on current account is not affected by both international pricing practices and consumer's sensitivity towards consumption and interest rate. The study extends the existing current account research by proving the importance of UlP deviation, international pricing practices and consumer's preferences in influencing the behavior of current account. It also suggests the policy makers to consider in those variables in formulating their current account policies.

AB - This study presents a general equilibrium model to explore the impact of international pricing practices on the behavior of current account. This study identifies the current account response towards monetary and uncovered interest parity (UlP) shocks under the environment of different pricing approaches. The model shows the pricing practices by exporters highly influence the impact of both monetary and UlP shocks on current account. However, the degree of current account response depends on the intra- and inter-temporal consumption substitution elasticities and interest rate elasticity of money demand. The strength of the UIP shock through exchange rate on current accounts is highly influenced by the interest rate elasticity of money demand. In contrast, the UIP direct shock on current account is not affected by both international pricing practices and consumer's sensitivity towards consumption and interest rate. The study extends the existing current account research by proving the importance of UlP deviation, international pricing practices and consumer's preferences in influencing the behavior of current account. It also suggests the policy makers to consider in those variables in formulating their current account policies.

UR - http://www.scopus.com/inward/record.url?scp=84858818719&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84858818719&partnerID=8YFLogxK

M3 - Article

VL - 33

SP - 3

EP - 16

JO - Jurnal Pengurusan

JF - Jurnal Pengurusan

SN - 0127-2713

ER -