A New Approach to Monetary Policy using Multidimentional Evaluation and Its Applicability in Islamic Finance

el Alaoui, Abdelkaderouatik and Jusoh, Hashim (2013) A New Approach to Monetary Policy using Multidimentional Evaluation and Its Applicability in Islamic Finance. In: Islamic Transactions and Finance: Principles and Development. The Malaysian Current Law Journal Sdn Bhd (MCLJ) & International Institute of Advanced Islamic Studies (IAIS), Selangor, Malaysia, pp. 415-430. ISBN 978-967-0379-32-6

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Abstract

The paper posits that by directly fixing interest rates and prices in the economy as practiced under classical monetary policy, it totally ignores the evolution of monetary aggregates. The paper performs a multi-scale decomposition of monthly variables based on Malaysian data using the wavelet approach. The results bring new insights about the interactions between interest rates and other economic aggregates in different time horizons. Finally the paper explores the potential applications of this innovative technique or approach towards monetary management in Islamic finance which should take as its reference the return of the real sector in the economy rather than the interest rate.

Item Type: Book Section
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Faculty / Institute: Faculty of Economics & Management Sciences
Depositing User: Mr Hashim Jusoh
Date Deposited: 13 Jan 2015 05:29
Last Modified: 13 Jan 2015 05:29
URI: http://erep.unisza.edu.my/id/eprint/2623

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