JURNAL EKONOMI MALAYSIA is a Scopus indexed peer reviewed journal published by Penerbit UKM, Universiti Kebangsaan Malaysia.The journal publishes original research articles as well as research notes, comments and book reviews on all aspects of economics, particularly those pertaining to the developing economies. These aspects are, but not confined to, monetary economics, development economics, resource economics, labour economics, international economics, Islamic economics, and the like. Articles are published 3 times per year in both English and Malay.
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View the latest issue for more recent articles: Volume 59 (3),
The Macroeconomic Fundamentals of the Real Exchange Rate in Malaysia: Some Empirical Evidence
Mohamad Shukri Johari, Muzafar Shah Habibullah, Roseziahazni Abdul Ghani, Suhaily Maizan Abdul Manaf
The aim of this paper is to estimate the equilibrium of exchange rates and identify the roles of macroeconomics fundamentals affecting exchange rates using Malaysian data spanning 1970 to 2019. This study adopts the Autoregressive Distributed Lag model to examine the long-run relationships or cointegration among variables and the dynamic effect within variables in the short-run over the sample period. The results suggest that inflation rate and national income growth rate play important roles in influencing exchange rate movement. The results also reveal that the misalignment of exchange rates is quite small and stable during 1988 to 2019, except for
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