Dynamics Linkages among Money, Output, Interest Rate and Price: The Case in Malaysia
This paper aims to examine the factors of monetary policy transmission that affecting output and inflation variability in Malaysia. By using quarterly data from 1980 to 2008, the results suggest that money is a lead output indicator and is also essential to curb inflation and maintain high growth...
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| Main Authors: | , |
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| Format: | Article |
| Language: | en |
| Published: |
Canadian Center of Science and Education
2011
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/9953/1/Dynamics%20linkages%20among%20Money%2C%20Output%2C%20Interest%20Rate%20%28abstract%29.pdf http://ir.unimas.my/id/eprint/9953/ http://www.researchgate.net/publication/49595069 |
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| Summary: | This paper aims to examine the factors of monetary policy transmission that affecting output and inflation variability
in Malaysia. By using quarterly data from 1980 to 2008, the results suggest that money is a lead output indicator and
is also essential to curb inflation and maintain high growth rate in GDP. Interest rate is found as another important
intermediate target in the monetary policy transmission mechanism in affecting output variability. The absence of
causality from real GDP to price suggests that the excess of aggregates demand generated by increase in real GDP is
absorbed by growth in aggregate supply. |
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