Monetary Policy Shock in Malaysia: Disaggregated Inflation Reacts Unevenly
The article examines how changes in Malaysia's monetary policy affect different types of prices. By using a special model, the researchers found that when the government changes its monetary policy, some prices go up or down quickly, while others change more slowly. This means that not all prices react the same way to monetary policy changes. The study also found that the overall inflation response doesn't always match the individual price changes. These findings can help the government better control inflation and manage living costs in Malaysia.