Business, Management and Accounting
3 years ago

Malaysia's Inflation Factors Uncovered: Impact on Economic Stability Revealed

Determinants of factors that affecting inflation in Malaysia / Nor Hasyimah Ahmad Hanapi
Ahmad Hanapi, Nor Hasyimah

Paper Summary

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Inflation in Malaysia has been a serious issue, with rates fluctuating over the years. A study focused on factors affecting inflation used data from 1986 to 2015, looking at variables like money supply, exchange rate, unemployment rate, government spending, and GDP. The research found that the inflation rate decreased from 5.4% in 2008 to 2.1% in 2015 and 2016, indicating an improvement in Malaysia's economic condition. The study used statistical tests to analyze the relationship between these factors and inflation, highlighting the importance of monitoring inflation to prevent negative impacts on the country.