Were weak economic fundamentals the main causes of the Malaysian economic decline in 1997?

Loke, Yu Ming. (1999). Were weak economic fundamentals the main causes of the Malaysian economic decline in 1997? Honours Thesis, School of Economics, The University of Queensland.

       
Attached Files (Some files may be inaccessible until you login with your UQ eSpace credentials)
Name Description MIMEType Size Downloads
THE15397.pdf Full text application/pdf 5.45MB 1
Author Loke, Yu Ming.
Thesis Title Were weak economic fundamentals the main causes of the Malaysian economic decline in 1997?
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 1999
Thesis type Honours Thesis
Total pages 105
Language eng
Subjects 14 Economics
Formatted abstract Two hypotheses have been put forward to explain the economic decline of Malaysia during the Asian crisis ill 1997. One attributes the crisis to weak economic fundamentals. The other cites unfair attacks on the Malaysian currency resulting from a contagion started by currency speculators, as the main cause of the economic decline.

A review of the theoretical background to the causes of financial and currency crisis establishes that weak economic fundamentals are the main factors that should be examined to ascertain the causes of Malaysia's economic decline. Applied economics is used where national accounting data, balance of payment data and financial accounts data is examined in order to assess Malaysia's internal and external balances prior to the onset of the Asian crisis. This is to determine if weak economic fundamentals were indeed the main causes of Malaysia's economic decline. The conclusion reached is that both the internal balance and external balance of Malaysia were sound prior to the onset of the crisis. However, there were signs of weaknesses in the financial system, which made the currency vulnerable to speculative attacks. The economic decline was a result of speculative attacks on the currency by currency speculators who capitalised on the vulnerabilities of the Malaysian financial system.



 
Citation counts: Google Scholar Search Google Scholar
Access Statistics: 144 Abstract Views, 1 File Downloads  -  Detailed Statistics
Created: Fri, 19 Nov 2010, 16:15:44 EST by Ning Jing on behalf of The University of Queensland Library