Recent financial crisis in Malaysia: response, results, challenges

This paper was one of the first writings that appeared on the subject and presented at a local conference while pending publication with the Indian Economic Journal.After a brief Introduction, Section 2 discusses broadly the process used for generating the data used for analysis as also the position of Malaysian economy during the crisis. Section 3 deals with controls as a tool for managing the financial turmoil. Section 4 argues, on the basis of results, that for Malaysia the imposition of controls was a better course of action than seeking help from the IMF. Section 5 makes brief reference to some challenges including the issue of dollar-ringgit peg. Section 6 contains a few concluding remarks.