Date of Award

1-1-2001

Thesis Type

Masters

Document Type

Thesis

Divisions

Faculty of Business and Economics

Department

-

Institution

Universiti Malaya

Abstract

The research of the effects of narrow money in the economy has been often and extensively done over the years. These include using Quantitative Theory of Money model and testing various types of monetary aggregates such as from narrow money to broad money to attest the relationship of money with the economic variables. Money has evolved from the form of barter trade to gold and to fiat money over the centuries. Today, in a modern world and advanced technology, the form of payments that has further enhanced the convenience of household, has transformed the society into a cashless society. Cashless payments can be in the form of credit card. debit card and e-purse. The initial intention of this paper was to find out the impact of credit card on the Malaysian economy. But due to lack of research data on credit cards, this research appraises the role of narrow money in the Malaysian economy assuming that credit cards have the same effect as of narrow money. The key findings are narrow money does affect inflation in the economy. But the relationship between narrow money and output is unclear. The findings have also proven that over the years, the role of narrow money has dwindled. Could it possibly happen because of new forms of payment? This research is unable to answer this question and will only serve as a starting point for future research to further explore  into the role of credit card in the economy that might have slowly taking over the role of narrow money (currency in circulation and demand deposits) in the economy.

Initial

snms

Additional Information

Dissertation (M.A) -- Faculty of Business and Economics, Universiti Malaya, 2001.

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