Jump to ContentJump to Main Navigation
Capital Market Liberalization and Development$
Users without a subscription are not able to see the full content.

José Antonio Ocampo and Joseph E. Stiglitz

Print publication date: 2008

Print ISBN-13: 9780199230587

Published to Oxford Scholarship Online: May 2008

DOI: 10.1093/acprof:oso/9780199230587.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 18 October 2019

The Malaysian Experience in Financial‐Economic Crisis Management: An Alternative to the IMF‐Style Approach

The Malaysian Experience in Financial‐Economic Crisis Management: An Alternative to the IMF‐Style Approach

Chapter:
(p.205) 8 The Malaysian Experience in Financial‐Economic Crisis Management: An Alternative to the IMF‐Style Approach
Source:
Capital Market Liberalization and Development
Author(s):

Martin Khor

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199230587.003.0008

In the midst of the 1997 East Asian financial crisis, Thailand, Indonesia, and South Korea implemented IMF-prescribed financial liberalization, contractionary monetary, and fiscal austerity policies as part of loan conditionality, some of which contributed to transforming the financial crisis into an economic recession and crisis. Malaysia implemented an alternative (Keynesian) strategy, which included capital control measures, low interest rates, and expansionary monetary and fiscal policies. Its crisis was shallower and shorter. This chapter reviews the crises and recoveries of each country and concludes that while Malaysia's exact strategy may not have been applicable to other countries, it acts as an example of how successful alternatives to IMF policies do exist. Developing countries should be able to select from a range of policy options during a crisis, according to their situation and ability to handle trade-offs. Countries accepting IMF packages do not have this freedom. IMF conditionality appears to prohibit recipient countries from following this prescription.

Keywords:   IMF, conditionality, capital controls, financial liberalization, Malaysia, East Asian financial crisis

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .