Monetary Policy in Malaysia: Theories and Facts

Monetary Policy in Malaysia: Theories and Facts explores the transformation of monetary policy in Malaysia along with its monetary tool, including the strategies used during economic crises and the latest pandemic. Monetary policy is important to ensure price stability, sustainable economic growth and financial stability in a country; in this case, Malaysia. This book not only presents important monetary policy theories and concepts, but also showcases the applications of monetary policy in Malaysia. In this regard, Bank Negara Malaysia plays a vital role in formulating and implementing effective monetary policies.

Monetary policy is a pertinent tool applied by central banks to achieve economic goals. It is frequently used to complement fiscal policy during normal and crisis times. The application of monetary policy in emerging countries has become more important, proven by the previous experience. For example, Bank Negara Malaysia launched a series of monetary actions such as lowering the interest rate in handling the economic slowdown during the height of COVID-19. It is critical to understand the implementation of monetary policy in promising emerging countries like Malaysia, especially for people who are interested to observe the economic development in Malaysia.