The Policy Responses and Implications of the Global Financial Crisis in Asia: A Case Study for Malaysia
This paper examines the impact of the 2008 Global Financial Crisis (GFC) on Malaysia’s economy as well as challenges and responses of the government in countering this crisis. It argues that the impact of the GFC is different from the 1997 Asian Financial Crisis (AFC). The AFC impacted the financial industry with the resultant collapse of Malaysia’s currency, while the GFC impacted the export sector with direct repercussions on Malaysia’s real economy. This paper explores the structural weaknesses of Malaysia’s economy exposed by the GFC. Given that Malaysia’s economic growth had become more trade-dependent after the AFC, domestic investments, including foreign direct investments, could only grow anemically. This had jeopardized long-term economic growth and productivity, which were crucial in offsetting the impact of the GFC. This paper shows that the expansionary policies implemented by the government to counter the GFC were lacking in meaningful structural changes and could not yield the desirable results. Lastly, it assesses the extent to which the New Economic Model proposed by the present government could spur economic growth in dealing with the GFC.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carmen M. Reinhart & Kenneth S. Rogoff, 2014.
"This Time is Different: A Panoramic View of Eight Centuries of Financial Crises,"
Annals of Economics and Finance,
Society for AEF, vol. 15(2), pages 1065-1188, November.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2008. "This Time is Different: A Panoramic View of Eight Centuries of Financial Crises," NBER Working Papers 13882, National Bureau of Economic Research, Inc.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2008. "This Time is Different: A Panoramic View of Eight Centuries of Financial Crises," CEMA Working Papers 595, China Economics and Management Academy, Central University of Finance and Economics.
- Liviu Deceanu & Mirela Pintea & El Thalassinos & Vicky Zampeta, 2010. "New Dimensions of Country Risk in the Context of the Current Crisis: A Case Study for Romania and Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 225-236.
- Eleftherios Thalassinos & Theodoros Kyriazidis & John Thalassinos, 2006. "The Greek Capital Market: Caught in Between Poor Corporate Governance and Market Inefficiency," European Research Studies Journal, European Research Studies Journal, vol. 0(1-2), pages 3-24.
- Eleftherios Thalassinos & Pantelis E. Thalassinos, 2006. "Stock Markets' Integration Analysis," European Research Studies Journal, European Research Studies Journal, vol. 0(3-4), pages 3-14.
- World Bank, 2009. "Malaysia Economic Monitor, November 2009," World Bank Other Operational Studies 3132, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xv:y:2012:i:1:p:55-70. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Eleni Giannakopoulou)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.