Money supply in Malaysia directly impacts prices, leading to economic stability.
The article investigates the relationship between money supply and prices in Malaysia from 1974 to 2007. By analyzing monthly data, the researchers found a long-term connection between money supply and prices. They also discovered that changes in money supply can lead to changes in the Consumer Price Index, supporting the idea that controlling money supply can help maintain stable prices in the economy. This is important because stable prices can reduce uncertainty and promote economic growth.