Focus on unemployment, not inflation

MARC's Firdaos Rosli: The unemployment rate, and not inflation, should be Malaysia’s primary policy focus in the immediate term.

THIS article will attempt to explain the justification for raising the overnight policy rate (OPR) and briefly illustrate the relationship between the OPR and inflation, and the unemployment rate.

Ultimately, this author argues that the unemployment rate, and not inflation, should be Malaysia’s primary policy focus in the immediate term.