Although a number of studies have been undertaken to demonstrate the importance of financial institutions to economic growth (for example: Gurley and Shaw 1955, Patrick 1966, Porter 1966, Goldsmith 1969, Maldonado 1970, Mckinnon 1973, Shaw 1973), only a few studies (such as: Bhatia and Khatkhate...

This paper examines the endogenous money supply hypothesis in the Malaysian environment from 1985 to 2000. The results are consistent with the Post Keynesian hypothesis, whereby the money supply in Malaysia was endogenous over the study period. The empirical results also showed a long-run...