Economic Crises in Malaysia
Causes, Implications & Policy Prescriptions

By Samuel Bassey Okposin & Cheng Ming Yu
December 2000
ASEAN Academic Press
ISBN: 1901919323
204 pages, Illustrated, 5 3/4" x 8 3/4"
$62.50 Hardcover

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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