Monetary Policy Determined by Asian Pacific Countries

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1.5 ORGANIZATION OF THE STUDY

Chapter One : Background Of Study

In this chapter, we will discuss about the problem statement, research objective and the limitation of the study.

Chapter Two : Reviews Of Literature

A literature review is a text written to consider the critical points of current knowledge including substantive findings as well as theoretical and methodological contributions to a particular topic. Its main goals are to situate the current study within the body of literature and provide context for the particular reader.

Chapter Three : Data and Methodology

This chapter explains the research methodology and design that were being adapted by researcher . The researcher investigates how the independent variables influence the development of dependent variable. This chapter also we will analyse what type of data will be used in this study. From the selected data, we will examine what type of methodology suits to test the data.

Chapter Four : Result and Findings

After we had conducted the test, we will record the result and analyse the findings. From these findings, we can come out with a conclusion.

Chapter Five : Recommendation and Conclusion

Chapter Six : Appendices

Chapter Seven : References

CHAPTER TWO

LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK

2.0 LITERATURE REVIEW

Generally, the demand for money is very importance of a well-specified to the implementation of monetary policy is of paramount importance in the existing literature. According to Goldfeld (1994), he considers that the relation between the demand for money and its main determinants is a crucial component and very important too in building block in macroeconomic theories of monetary policy. In developed and developing countries, t...

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...l variable by applying the Eagle-Granger two-step procedure which is to test the long-run cointegration.

For Darrat(1986), he examined the money demand functions for three OPEC countries which are Saudi Arabia, Lybia, and Nigeria from 1963 to 1979. He found the strongly result which is suggests that expected real income is positively related to real demand for money while expected inflation rate is negatively related to real money demand. Besides that, he also found out on the money demand equation there is a strong negative effect exerted by the foreign interest rates. In contemporary open economies, he argued that an international opportunity cost of money which is foreign interest rate could be as important as its domestic counterpart like domestic interest rate which is occur due to the paucity of adequate domestic financial assets in which to hold wealth.

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