Money and inflation in Malaysia: an analysis of causality (1970-92)

This paper investigates the causal relationship between money supply and rate of inflation using Malaysian data for the period 1970-92. The Granger methodology was adopted and results generally indicate a bidirectional relationship between money supply and the rate of inflation. In specific, money s...

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Main Authors: Abdullah, Ahmad Zainuddin, Yusof, Zulkornain
Format: Conference or Workshop Item
Language:English
Published: Universiti Putra Malaysia 1994
Online Access:http://psasir.upm.edu.my/id/eprint/47454/
http://psasir.upm.edu.my/id/eprint/47454/1/Money%20and%20inflation%20in%20Malaysia%20an%20analysis%20of%20causality%20%281970-92%29.pdf
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author Abdullah, Ahmad Zainuddin
Yusof, Zulkornain
author_facet Abdullah, Ahmad Zainuddin
Yusof, Zulkornain
author_sort Abdullah, Ahmad Zainuddin
building UPM Institutional Repository
collection Online Access
description This paper investigates the causal relationship between money supply and rate of inflation using Malaysian data for the period 1970-92. The Granger methodology was adopted and results generally indicate a bidirectional relationship between money supply and the rate of inflation. In specific, money supply causes inflation for all cases (MI, M2 and the various choices of lag-lengths of the independent variable) while inflation causes money supply for all cases except for M₂ at lag 12 and M1 at lag 8 for the equal lag-length analysis.
first_indexed 2025-11-15T10:12:22Z
format Conference or Workshop Item
id upm-47454
institution Universiti Putra Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T10:12:22Z
publishDate 1994
publisher Universiti Putra Malaysia
recordtype eprints
repository_type Digital Repository
spelling upm-474542016-05-16T08:12:09Z http://psasir.upm.edu.my/id/eprint/47454/ Money and inflation in Malaysia: an analysis of causality (1970-92) Abdullah, Ahmad Zainuddin Yusof, Zulkornain This paper investigates the causal relationship between money supply and rate of inflation using Malaysian data for the period 1970-92. The Granger methodology was adopted and results generally indicate a bidirectional relationship between money supply and the rate of inflation. In specific, money supply causes inflation for all cases (MI, M2 and the various choices of lag-lengths of the independent variable) while inflation causes money supply for all cases except for M₂ at lag 12 and M1 at lag 8 for the equal lag-length analysis. Universiti Putra Malaysia 1994 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/47454/1/Money%20and%20inflation%20in%20Malaysia%20an%20analysis%20of%20causality%20%281970-92%29.pdf Abdullah, Ahmad Zainuddin and Yusof, Zulkornain (1994) Money and inflation in Malaysia: an analysis of causality (1970-92). In: Proceeding of the Seminar of Economics and Management, 18-19 Oct. 1994, Port Dickson, Malaysia. (pp. 1-15).
spellingShingle Abdullah, Ahmad Zainuddin
Yusof, Zulkornain
Money and inflation in Malaysia: an analysis of causality (1970-92)
title Money and inflation in Malaysia: an analysis of causality (1970-92)
title_full Money and inflation in Malaysia: an analysis of causality (1970-92)
title_fullStr Money and inflation in Malaysia: an analysis of causality (1970-92)
title_full_unstemmed Money and inflation in Malaysia: an analysis of causality (1970-92)
title_short Money and inflation in Malaysia: an analysis of causality (1970-92)
title_sort money and inflation in malaysia: an analysis of causality (1970-92)
url http://psasir.upm.edu.my/id/eprint/47454/
http://psasir.upm.edu.my/id/eprint/47454/1/Money%20and%20inflation%20in%20Malaysia%20an%20analysis%20of%20causality%20%281970-92%29.pdf