Calculating MCI China , Please HELP! Important for thesis! URGENT

[DELAROSAAAAA]

Hi,

Can someone explain the calculation of the MCI as explained in the paper in the following link.

http://www.hkma.gov.hk/media/eng/publication-and-research/quarterly-bulletin/qb200506/fa1.pdf

I want to calculate it for China from 1995 till 2012. However I have no idea how to do it and I need it in order to finish my master thesis which is due in 2 weeks already. Please help me

!

 

[Quaid]

Can someone explain the calculation of the MCI as explained in the paper

If you do not understand the explanation provided, then you might not understand a repeat.

Instead, you could post the statements in the paper that you do not understand. This would give readers some idea about why or where you're stuck.

 

[DELAROSAAAAA]

Broad question

To make it more clear, which formula do I have to use?

y = -α r – β reer + θ credit (1)
MCI = r + β α reer – θ α credit (2)
Narrow MCI = r + 0.275 ∆reer (3)
Broad MCI = r + 0.249 ∆reer - 0.400 ∆credit (4)

I don't understand what the first 2 are for?

I think I have to use formula 3 or 4 depending on my preference for narrow or broad MCI. Let's say I prefer the broad MCI.

R represents real interest rate, so can I use the following data? (Percentage) Or do I have to use absolute data?
Real interest rate (%) | Data | Table

Then reer is the real effective exchange rate, can I use this data for that? (However this is no percentage)
Real effective exchange rate index (2005 = 100) | Data | Table

Credit is total loans delfated by cpi, can I use this data for that?
Domestic credit to private sector (% of GDP) | Data | Table

Then to conclude, is it possible that someone can maybe fill in the formula with some real data so it is clear as an example?

I hope my question is more clear now. If you know how to do this please help me, I'm quite desperate since this is the last and only part I miss in order to finish my thesis. Would really mean a lot.