This paper looks at bound test approach for cointegration analysis, to verify the stability of Singaporean real Gross Domestic Product (GDP), to construct the Monetary Conditions Index (MCI) over the quarterly period 1981:1-2004:4. The bounds test confirms a long-run equilibrium relationship...

: This paper constructs the Monetary Conditions Index (MCI) over the quarterly period 1983:2-2004:4, using the bounds test approach proposed by Pesaran et al. (2001). The bounds test evidently reveals long-run relationship between the real GDP and its determinants, i.e., long-term interest rate,...