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The Malaysian Property Boom and Bust Cycle: History Repeating?

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  • Ferlito, Carmelo

Abstract

According to Mark Thornton, we could be very close to another major economic crisis. Ten years have passed from the so-called Great Recession and Thornton's prediction confirms my view according to which business fluctuations are pervasive, and the crisis that emerged in the Western world in 2007 is just the latest and most evident manifestation of such dynamics. I have expressed the idea that business cycles are unavoidable by developing the doctrine of the natural cycle. In the present paper I used that framework in order to describe the evolution of the Malaysian property market in the last decade in the context of the general development of the national economy. In fact, it seems that this evolution presents many features of the cyclical dynamic that brought about the Great Recession after a ten year delay.

Suggested Citation

  • Ferlito, Carmelo, 2018. "The Malaysian Property Boom and Bust Cycle: History Repeating?," EconStor Conference Papers 190772, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esconf:190772
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    References listed on IDEAS

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    1. David Prychitko, 2010. "Competing explanations of the Minsky moment: The financial instability hypothesis in light of Austrian theory," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 23(3), pages 199-221, September.
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    3. Siti Nurazira Mohd Daud & Abd Halim Ahmad & Jan M Podivinsky, 2017. "Credit and the housing boom in Malaysa: a come back?," Economics and Business Letters, Oviedo University Press, vol. 6(4), pages 110-115.
    4. Gjerstad,Steven D. & Smith,Vernon L., 2014. "Rethinking Housing Bubbles," Cambridge Books, Cambridge University Press, number 9780521198097, September.
    5. Jesús Huerta de Soto, 2008. "The Austrian School," Books, Edward Elgar Publishing, number 13047.
    6. Peter Lewin, 2005. "The Capital Idea and the Scope of Economics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 18(2), pages 145-167, June.
    7. Carmelo Ferlito, 2019. "A meaning discovery process: the unique contribution of the Austrian School of Economics and its relevance for contemporary economics curricula," International Journal of Pluralism and Economics Education, Inderscience Enterprises Ltd, vol. 10(2), pages 190-207.
    8. Ferlito, Carmelo, 2018. "Affordable Housing and Cyclical Fluctuations: The Malaysian Property Market," EconStor Research Reports 181457, ZBW - Leibniz Information Centre for Economics.
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    Cited by:

    1. Ferlito, Carmelo, 2019. "The Property Market, Affordability and the Malaysian National Housing Policy," EconStor Preprints 197287, ZBW - Leibniz Information Centre for Economics.

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    More about this item

    Keywords

    business cycles; Malaysia; property market; expectations;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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