Paper Title
The Effect of MONTARY Policy on Economic Growth in ASEAN Countries

Abstract
This study aims to estimate the effect of monetary policy on economic growth in ASEAN countries. By selecting a target group from ASEAN countries that have primary objective, this paper could classify them to be the inflation targeting group and exchange rate targeting group. The data has been collected from World Bank, covers the period from 1996 to 2018. By applying the nonparametric kernel density model to demonstrate the relationship between monetary policy variables and economic growth, and using the Bayesian Metropolis-Hastings models to estimate the monetary effect. The empirical result could be described as follows; in inflation targeting group, both inflation and interest rate would stimulate economic growth, however, the exchange rate could slow down the economic growth of countries. Furthermore, for exchange rate targeting group, both inflation and exchange rate would encourage economic growth. Keywords - ASEAN, Bayesian approach, Nonparametric model, Monetary policy.