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The Southeast Asian Financial Crisis: Malaysia Rejects Economic Orthodoxy

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  • Sikorski, Douglas

    (Department of Business Policy Faculty of Business Administration National University of Singapore Kent Ridge Crescent, Singapore 119260)

Abstract

Pinpointing the actual forces at work in the Asian Financial Crisis, especially politics and other non-market factors that contributed substantially to the loss of confidence, has not been easy. The causes of the crisis might be interpreted as either a failure of Asian capitalism, or alternatively a failure of market capitalism. The first interpretation obviously has a great deal of substance, and Malaysian economic institutions and public policy are not blameless - reckless over-expansion and credit growth, a pegged currency, political imbroglios, etc. Obviously, Malaysia needs to restore confidence in its financial institutions and practices. But Prime Minister Dr Mahathir Mohamad has rejected economic orthodoxy in favour of a more radical strategy. His dramatic gambit has some inetelectual legitimacy based an a revisionist movement in economics and may well herald what will be the “new architecture†of the international monetary system.

Suggested Citation

  • Sikorski, Douglas, 1999. "The Southeast Asian Financial Crisis: Malaysia Rejects Economic Orthodoxy," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 33, pages 21-41.
    • Handle: RePEc:ukm:jlekon:v:33:y:1999:i::p:21-41
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    References listed on IDEAS

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    1. Rodrik, Dani, 1999. "Where Did All the Growth Go? External Shocks, Social Conflict, and Growth Collapses," Journal of Economic Growth, Springer, vol. 4(4), pages 385-412, December.
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