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Jurnal Ekonomi Malaysia

33 1999 123 – 140

Using P-Star Model to Linking Money and Prices in A Financial Liberalised Developing Economy: The Case for Malaysia

Department of Economics
University PUlra Malaysia
43400 UPM Serdang
Selangor Daro1 Ehsan
Malaysia


Abstract

The P-Star approach of modelling inflalion proposed by Hallman et al. has been widely tested in the United States and other developed countries. The applicability of the P-Star model for the developing countries is yet to be determined. The main purpose of the present study is to add to the current literature on the robustness of the P-Star model with respect to a developing country – Malaysia. Using a sample period from 1981: 1 t0 1994:4, our results suggest that Malaysian monetary data support the P-Star model. We conclude that there is a close relationship between money and the price level in Malaysia despite the occurences of financial liberalisation in the 1980s and 1990s.

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Habibullah, (1999). Using P-Star Model to Linking Money and Prices in A Financial Liberalised Developing Economy: The Case for Malaysia. Jurnal Ekonomi Malaysia, 33, 123–140.

@article{Habibullah1999using,
  title={Using P-Star Model to Linking Money and Prices in A Financial Liberalised Developing Economy: The Case for Malaysia},
  author={Habibullah, Muzafar},
  journal={Jurnal Ekonomi Malaysia},
  volume={33},
  number={},
  pages={123—140},
 

year={1999},
}

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