马来西亚政府通过改变利率和调整货币数量进行国家货币政策。马来西亚中央银行、马来西亚国家银行利用利率目标的时间。运用货币政策，国行可以增加或减少货币供应量和利率。国家将制定货币政策，根据不同的经济形势是通胀或衰退，通过提高或降低利率以实现宏观经济目标。随后，货币政策将影响国家的总需求的三个组成部分，这是消费，投资和净出口。货币政策工具，通常使用的国行是利率，银行隔夜政策利率（OPR）。马来西亚政府可以设置公开市场操作和法定准备金率来控制货币政策。除了利率变化，BNM将征收的公开市场工具来减少或通过出售或购买证券，增加市场货币供应量。此外，法定准备金率是储备货币供应量的一种工具。
Malaysian government conducts the nations monetary policy by changing interest rates and adjusting the quantity of money. The central bank of Malaysia, Bank Negara Malaysia uses interest rate targeting for the time being. By using monetary policy, BNM can increase or decrease money supply as well as the interest rate. BNM will set monetary policy base on different economy situation whether inflation or recession, by increase or decrease the interest rate in order to achieve macroeconomic objectives. Subsequently, monetary policy will influence aggregate demand of the country in terms of three components, which are consumption, investment and net exports. Monetary policy instrument that normally used by BNM is the interest rate at which the banks make overnight policy rate (OPR). Malaysian government can set the open market operation and statutory reserve ratio to control the monetary policy. Besides changing the interest rates, BNM will be imposing open market instrument to reduce or adding money supply in the market by selling or buying securities. Moreover, statutory reserve ratio is an instrument to reserve the money supply.
Here are some examples of how Malaysian government set monetary policy to fight recession and inflation. In a recession, real GDP is lower than potential GDP. This lead to high unemployment due to some firms operating below normal capacity. To reach its goal of high employment and overcome recession, the government needs to carry out an expansionary monetary policy by increasing the money supply and decreasing interest rates. Lower interest rates cause an increase in consumption, investment and net exports, which increase the aggregate demand. Besides that, the government will also reducing bank's reserve requirement and also purchasing government bonds. At the end, real GDP increase to the potential GDP and the price level rises then recessionary gap will be eliminated.
For example, during financial crisis on 1998, credit flow in Malaysia is slow. Therefore, Bank Negara Malaysia had take action in increasing liquidity in banking system and then increase the credit. In year 1998, government decreased the statutory reserve requirements from 13.5% to 10% (February), 8% (July) and 4% (October).
However, in inflation, real GDP is higher than potential GDP. Therefore, BNM will use a contractionary monetary policy to keep aggregate demand from expanding so rapidly that the inflation rate begins to increase. BNM will impose an action to lower the inflation rate and restore the price stability which by increasing the OPR. BNM will increase the target OPR and sells securities and decrease the supply of reserves of the banking system, the banks reduce deposits by decreasing loans and reduce the supply of money. The short term interest rate increase and reduce the quantity of money demanded. Then, banks decrease the supply of loans decreases the supply of loanable funds and the supply curve shift to the left. The decreasing in investment will lead decreasing in aggregate planned expenditure. The aggregate demand will be decrease therefore real GDP fall to the potential GDP and the price level falls then inflationary gap will be eliminated.
Fiscal policy 财政政策
Fiscal policy refers to the use of the government budget to influence economic activity. Malaysian government's attempt to influence the economy by setting and changing taxes, making transfer payments, and purchasing goods and services in order to achieve macroeconomic objectives such as full employment, sustained economic growth, and price level stability. The two main instruments of fiscal policy use by Malaysian government are government taxation (revenue collection) and expen
