When the Asian financial crisis struck, Malaysia faced a devaluation of the ringgit and a mass exodus of capital, even when it raised interest rates at home. Additionally, it made use of monetary instruments, such as sterilisation and its reversal, to smooth out the effects of capital movements. Table of contents 1. How did Malaysia […]
economies because of its robust global demand for electronics and accommodating macroeconomic policy. Due to the surpluses in the external current account, international reserves were built up. Table of contents 1. How can the financial crisis be recovered? 2. What international organization helps the Asian countries recover from the Asian crisis of 1997? 3. What […]
When the Asian financial crisis struck, Malaysia faced a devaluation of the ringgit and a mass exodus of capital, even when it raised interest rates at home. The government was therefore able to lower interest rates to stimulate the economy without having to worry about currency fluctuations or capital flight. Table of contents 1. How […]