Maintaining low, stable inflation is crucial for economic growth in Malaysia. The study looked at inflation, monetary policy, and their impact on the economy since the late 1950s. It found that stable money demand and links between money, output, and prices support using monetary aggregates for policy. However, despite a rule-based approach, Malaysia's central bank used discretionary policy, leading to high inflation volatility. To improve, transparency and credibility in monetary policy are needed for keeping inflation stable.