Monetary policy shocks in Malaysia lead to varied inflation responses
Researchers in Malaysia studied how changes in monetary policy affect different types of prices. They used a special model to look at how prices in different categories react to these policy changes. They found that when the government makes small changes to monetary policy, prices in some categories go up or down right away, while others take longer to respond. This means that not all prices react the same way to changes in policy. They also discovered that the overall inflation rate doesn't always match up with how individual prices change. This information can help the government figure out how to control inflation and manage the cost of living for people in Malaysia.