Citation

Hakimi Suid, Muhamad Lokman (2021) Money Supply and Economic Activities in Malaysia. International Journal of Management, Finance and Accounting, 2 (2). pp. 22-30. ISSN 2735-1009

Text (Money Supply and Economic Activities in Malaysia) 115 - Published Version Restricted to Repository staff only Download (3kB)

Abstract

This study examined how economic activities affect the direction of money supply in Malaysia. The overnight policy rate is the interest rate set by Bank Negara Malaysia (BNM) as its monetary policy tool. Based on the Keynesian Economic Theory, the autoregressive distributed lag (ARDL) model was applied to analyse how the industrial production index, interest rate and consumer price index influenced money supply. The findings of this study supported the notion that economic growth significantly affected the money supply in the short run. There was no evidence of such a relationship in the long run. Maintaining a stable money supply is vital to limit adverse variations in economic activity. A stable money supply allows Malaysia to respond effectively during difficult times, especially the current covid19 pandemic.

Item Type:	Article
Uncontrolled Keywords:	Money Supply, Economic activities, Autoregressive Distributed Lag
Subjects:	H Social Sciences > HB Economic theory. Demography > HB172.5 Macroeconomics
Divisions:	Faculty of Management (FOM)
Depositing User:	Mr. MUHAMMAD AZRUL MOSRI
Date Deposited:	07 Aug 2024 04:44
Last Modified:	07 Aug 2024 04:44
URII:	http://shdl.mmu.edu.my/id/eprint/12769

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