Impact of monetary policy towards economic growth: evidence from Malaysia / Nurul Akmar abdul Ghani

The purpose of this study is to examine how monetary policy affects economic growth with Malaysia as a case study. Malaysia was chosen for this study due to the significant developmental strides the Malaysian economy has achieved over the last several decades. Primarily, the research will focus on the relationship between inflation level, interest rate, money supply and gross domestic product, which will use as the instrument for measuring economic growth. The research will use quantitative analysis to identify the impact of monetary policy on GDP and economic growth in terms of monetary policy tools, such as the inflation level, interest rate, and money supply. The sample of the study covered between 1991 and 2020. Due to data availability, the research will focus on annual series data. All data will be evaluated for stable distributions in order to clarify and justify the decision of econometric analysis. The ordinary least squares (OLS) regression estimate analysis will be performed to examine the relationship and significance of these variable.
Keywords: Monetary policy, Economic growth in Malaysia, Ordinary least square