Elekdag, Selim; Lall, Subir; Alp, Harun - International Monetary Fund (IMF) - 2012
episode of extreme financial turbulence, Bank Negara Malaysia (BNM) let the exchange rate depreciate as capital flowed out … cuts. Furthermore, had a fixed exchange rate regime been in place, simulations indicate that output would have contracted … by -5.5 percent over the same four-quarter period. In other words, exchange rate flexibility and the interest rate cuts …