Impact of Inflation on The Economic Development of Malaysia

Abstract

This paper analyses inflation determinants in Malaysia, employing economic indicators. The research expands analytical work on inflation theory determinants in three respects. Second, it looks at a much larger variety of economic variables, all of which are empirically evaluated in various countries. Third, given the different analytical consequences of the economic indicators for each region, the author analyses those precisely concerning inflation determinants based on Malaysian economic performance over the past 43 years, from 1971 to 2013. Besides, more than five literature reviews to identify economic success and inflation are used to do this study. Finally, the third goal of the research is to distinguish inflation causes between different and dependent variables through the Multiple Regression Process. A basic reason for finding a long-term approach is to obtain information about inflation determinants in Malaysia. However, it was not limitable as a proxy for money supplies in Malaysia for high monetary growth (annual percentages). In addition, it is also comprised of macro economically inflation uncertainties, energy, foreign exchange; Imports, and the gross domestic product for goods and services.