Malaysian Eclipse: Economic Crisis and Recovery

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Jomo Kwame Sundaram
Zed, 2001 - Political Science - 321 pages
Examines the Malaysian economic crisis of 1997-98. The book argues that the crisis was not due to macroeconomic profligacy on the part of governments, but was due to foreign portfolio investor sentiment, herd behaviour, transborder contagion, reversal of short-term capital flows, asset price deflation and their ramifications. The Malaysian economy is compared to others in the region and the effects of contradictory fiscal and monetary policies are traced. The remarkable recovery in Malaysia seen as principally due to successful Keynesian reflationary efforts as well as fortuitous external circumstances, most notably the electronics boom. The authors conclude that reform in the international financial system is urgently needed, but warn that reform prospects have worsened with economic recovery and the apparently receding threat of fresh crises.

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From Currency Crisis to Recession 1
Annual Changes in Gross Domestic Product by
PreCrisis Economic Weaknesses and Vulnerabilities

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About the author (2001)

Jomo K. S. (PhD, Harvard, 1978) is Professor in the Applied Economics Department, University of Malaya, Kuala Lumpur, Malaysia. His major book publications include A Question of Class, Growth and Structural Change in the Malaysian Economy, Southeast Asia's Misunderstood Miracle (with others) and Malaysia's Political Economy (with E. T. Gomez). Chang and Khoo are experienced Malaysian researchers,while the other contributors to the volume are all based in Malaysia.

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