The Monetary Policy and International Trade Response Amidst Volatility in the Fed's Federal Fund Reserve (FFR): The Emerging Market of Southeast Asian Study
DOI:
https://doi.org/10.18502/kss.v10i5.18126Keywords:
monetary policy, the fed’s federal fund reserve (FFR), the domestic interest rate, international trade, the emerging marker of Southeast AsianAbstract
The purpose of this study was to analyses the domestic moneter policy, inflation and international trade responses to the Fed’s federal fund reserve (FFR) shock in the emerging market of Southeast Asian such Indonesia, Malaysia, Viet Nam, Thailand, and Philipine. The data analysis method used was Vector Autoregression (VAR) to persive the domestic interest rate, exported, imported and inflation to the Fed’s federal fund reserve (FFR) shock as well as exported, imported and inflation variables response to the domestic interest rate changed in each country. The result of study shown that the Fed’s federal fund reserve (FFR) shock results diverse responses in each country. These reflecte the difference of economic structure and monetery policy. The response of exported, imported, and inflation variables on the domestic interest rate changed also have a response variation each country. This finding confirms that domestic monetery policy need to be adjusted with economic circumstance and trade characteristic in each country to address external shock such ach the Fed’s federal fund reserve (FFR) policy.
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