Inflation and coping strategies: analysis of consumer in Penang, Kedah and Perlis
List of Authors
  • Nor Asmat Ismail

Keyword
  • Inflation, Coping strategy, Low income households

Abstract
  • Inflation has become a hot issue in Malaysia recently because it associated with the cost of living. This study helps policy maker to understand the coping strategies adopted by households in order to cope up inflation for the purpose of designing and implementing appropriate policies and programs for low income households. Therefore, this study has two objectives. First, to investigate households who are affected by inflation and second, to investigate the coping strategies adopted by households. This study conducted a survey in Penang, Kedah and Perlis using structured questionnaire to gather the information. The study concluded that almost 90% of the respondents were effected by inflation. The most effected were low income households, married and living in urban area and their coping strategies were buy less quantity, buy lower quality and less quantity and buy lower quality of goods according to the types of goods.

Reference
  • 1. Aruoba, S. B., & Schorfheide, F. 2011. Sticky prices versus monetary frictions: An estimation of policy trade-offs. American Economic Journal: Macroeconomics, 3(1), 60-90.

    2. Bloom, N. 2009. The impact of uncertainty shocks. Econometrica, 77(3), 623-685.

    3. Doepke, M., & Schneider, M. 2006. Inflation and the redistribution of nominal wealth. Journal of Political Economy, 114(6), 1069-1097.

    4. Eggertsson, G. B. 2006. he deflation bias and committing to being irresponsible. Journal of Money, Credit and Banking, 38(2), 283-321.

    5. Eggertsson, G. B., & Woodford, M. 2003. he zero bound on interest rates and optimal monetary policy. Brookings Papers on Economic Activity, 34(1), 139-235.

    6. Fahmida Dil Farzana, Ahmed Shafiqur Rahman, Sabiha Sultana, Mohammad Jyoti Raihan, , Md Ahshanul Haque, Jillian L. Waid, Nuzhat Choudhury & Tahmeed Ahmed. 2017. Coping strategies related to food insecurity at the household level in Bangladesh. PLoS ONE, 12(4), 1-17.