Economics, Econometrics and Finance
3 years ago

Real exchange rate impacts economic growth in Malaysia, influencing government policies.

1 view
RePEc: Research Papers in Economics
Granger-causal relationship between real exchange rate and economic growth: Malaysia as a case study
Charnikat Charnikat, Mansur Masih

Paper Summary

The real exchange rate in Malaysia can impact economic growth. GDP is influenced by the exchange rate, not the other way around. Government policies on foreign exchange reserves can affect both the exchange rate and economic growth. Monetary policies that target the exchange rate could help policymakers make better decisions.

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