Economic Crises in Malaysia
Causes, Implications & Policy Prescriptions
By Samuel Bassey Okposin & Cheng Ming Yu
ASEAN Academic Press
204 pages, Illustrated, 5 3/4" x 8 3/4"
Malaysia has enjoyed high economic growth for more than four decades. Keeping
Malaysia on a sustainable growth plan has been a major challenge to economic
planners. Fast economic growth however breeds crises. Since each crisis is uniquely
different, understanding the causes of past crises is not sufficient to find
a prescription for future ones.
This study identifies the various economic crises that Malaysia has encountered
since independence in 1957. Besides examining theoretical debates and causes
of economic crises, it also discusses the economic impact of each of these crises
in relation to the economy and looks at the policy measures adopted for each
crisis. This is the first time that all crises since Malaysia's independence
have been documented in a single volume. Finding the right policy prescription
for any of these crises can be an arduous task.
Although the Malaysian government's policy during these crises has at times
been unconventional, its ultimate policy direction since 1957 has always been
made with a view on both economic considerations and social implications. In
an open economy like Malaysia, both monetary and exchange-rate policies must
be seen as part and parcel of an integrated package of macroeconomic measures.
In an increasingly volatile environment, the two policies must be consistent
with each other, under the broad thrust of a macroeconomic approach to achieve
sustainable growth in an environment of price stability.
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