Malaysian Eclipse

Plot

This book examines the Malaysian economic crises of 1997-98. Compared to Thailand, Indonesia, and South Korea, Malaysia had less foreign debt, was less badly hit, and never really needed IMF credit facilities. Unfortunately, it was more exposed due to the greater role of its capital market. Recovery has been principally due to successful Keynesian reflationary efforts as well as fortuitous external circumstances, most notably the electronics boom. This book examines the need for an international financial system reform for developing countries, and how reform prospects have worsened with economic recovery and the apparently receding threat of fresh crises.