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Thursday, July 16, 2020 | History

2 edition of Did the Malaysian capital controls work? found in the catalog.

Did the Malaysian capital controls work?

Ethan Kaplan

Did the Malaysian capital controls work?

by Ethan Kaplan

  • 44 Want to read
  • 25 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Capital movements -- Government policy -- Malaysia.,
  • Capital controls -- Malaysia.,
  • Financial crises -- Malaysia.,
  • Debts, External -- Malaysia.

  • Edition Notes

    StatementEthan Kaplan, Dani Rodrik.
    SeriesNBER working paper series -- no. 8142, Working paper series (National Bureau of Economic Research) -- working paper no. 8142.
    ContributionsRodrik, Dani., National Bureau of Economic Research.
    The Physical Object
    Pagination36, [11] p. :
    Number of Pages36
    ID Numbers
    Open LibraryOL22415748M

    Bank Negara Malaysia, the nation's central bank, decided to impose capital controls to prevent the outflow of the Ringgit in the open market. The Ringgit became non-internationalised and a traveller had to declare to the central bank if taking out more than RM10, out of the country and the Ringgit itself was pegged at RM to the US dollar. So, what Malaysia did was to impose capital controls - meaning controlling the inflows and outflows of Ringgit and making it internationally non-tradeable. This essentially means it is easy for foreigners to bring money into Malaysia but once the money is in, it is very hard to bring back out.

      Malaysia's capital control is a mix of the above measures (Rojak in Malaysian) and nothing new at all despite what the press claimed it was unique or one and only in the world because Malaysia did not embrace the IMF. The following measures are taken to ensure that the objectives of stabilizing the Ringgit and control the capital flows are. The Malaysian Capital Control Regime oř 1 83 and the capital account further liberalized. Further liberalization became an important element in policy reforms initiated in mids. For example, in keeping with the government's ambitious.

    Capital controls, as applied in Malaysia during the Asian crisis or in Argentina after , may help the economy recover (by promoting exports and discouraging imports through devaluation) and at the same time prevent capital flight. Furthermore, since Malaysia’s capital controls were actually imposed over a year after the financial crisis had begun in July , it is likely that most of the investors who panicked and wished to withdraw their capital had already done so by the time Malaysia’s controls went into effect ((Abdelal and Alfaro, , p. 39; Johnson et al.


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Did the Malaysian capital controls work? by Ethan Kaplan Download PDF EPUB FB2

Malaysia recovered from the Asian financial crisis swiftly after the imposition of capital controls in September The fact that Korea and Thailand recovered in parallel has been interpreted as suggesting that capital controls did not play a significant role in facilitating Malaysia's by: DID THE MALAYSIAN CAPITAL CONTROLS WORK.

ABSTRACT Malaysia recovered from the Asian financial crisis swiftly after the imposition of capital controls in September The fact that Korea and Thailand recovered in parallel has been interpreted as suggesting that capital controls did not play a significant role in facilitating Malaysia’s rebound.

Abstract. Malaysia recovered from the Asian financial crisis swiftly after the imposition of capital controls in September The fact that Korea and Thailand recovered in parallel has been interpreted as suggesting that capital controls did not play a significant role in facilitating Malaysia Cited by: Malaysian capital controls (English) Abstract.

Malaysian authorities implemented controls on international capital flows late in the Asian crisis, when most of the portfolio outflows had already occurred. The exchange rate had depreciated sharply and was Cited by: Malaysian authorities implemented controls on international capital flows late in the Asian crisis, when most of the portfolio outflows had already occurred.

The exchange rate had depreciated sharply and was fixed at an undervalued level, making further capital flight unlikely. The analysis suggests that carefully designed temporary capital controls were successful in providing Malaysian policymakers a viable setting for aiding the recovery process through the standard.

This was “Perhaps Malaysia’s most controversial measure was to introduce selective capital controls.” said the WB in its report. To explain it plainly for the laymen, the World Bank is. IT IS now almost a year since Malaysia introduced selective capital control. Initially we were worried over whether or not the control would work.

The criticisms levelled at us by the international media and foreign financial experts did not help to strengthen our confidence in. Malaysian Capital Controls Ron Hood EASPR Abstract: Controls on international capital flows were implemented by the Malaysian authorities late in the evolution of the Asia crisis.

The bulk of the portfolio outflows were already over. The exchange rate had depreciated sharply and was fixed at an undervalued level making further capital flight.

Capital controls are residency-based measures such as transaction taxes, other limits, or outright prohibitions that a nation's government can use to regulate flows from capital markets into and out of the country's capital measures may be economy-wide, sector-specific (usually the financial sector), or industry specific (for example, "strategic" industries).

The macro question is the obvious one: Did the Malaysian capital controls ease the impact of the Asian Crisis on the Malaysian economy.

Since GDP plummeted in and bounced back init is tempting to conclude that the controls had a positive effect.

However, the paper argues that the data are actually inconclusive. (1) Capital controls made no difference to the recovery process (Fischer ; DornbuschIMF ) - a case of ‘locking the stable door after the horse has bolted’ Capital had already left Malaysia, and the pressure for capital outflow from the region was coming to an end at the time Malaysia's recovery was much the same as that of the.

Downloadable. Author(s): Kaplan, Ethan & Rodrik, Dani. Abstract: Malaysia recovered from the Asian financial crisis swiftly after the imposition of capital controls in September The fact that Korea and Thailand recovered in parallel has been interpreted as suggesting that capital controls did not play a significant role in facilitating Malaysia's rebound.

Abstract. Malaysia recovered from the Asian financial crisis swiftly after the imposition of capital controls in September The fact that Korea and Thailand recovered in parallel has been interpreted as suggesting that capital controls did not play a significant role in facilitating Malaysia's rebound.

In Septemberthe Malaysian authorities launched a policy package designed to insulate monetary policy from external volatility.

Measures included an exchange rate pegged to the U.S. dollar and selected exchange and capital controls, complemented by a fiscal stimulus package that stepped up capital. capital controls did play a pivotal role in the recovery by insulating the domestic capital market from the world capital market (with respect to short-term ºows) and thus allowing the Malaysian government to engage in ªscal and monetary expan.

Capital Controls May Threaten Malaysian Housing Project By Hou Wen, Wang Jing and Coco Feng Prospective homebuyers examine a model of Country Garden Group's planned Forest City development in a showroom at Johor Bahru, Malaysia, on Feb. Abstract.

Fridrik M. Baldursson explores the effects of the economic policies prescribed by the IMF in response to the Iceland crisis. He finds that the capital controls were effective in that a gap emerged between the onshore and the offshore exchange rates; domestic interest rates did not follow foreign interest rate, and the statistical properties of exchange rate movements changed when.

Malaysia's government has come out assuring the markets that it won't launch a capital control, which it did during the Asian Crisis Crisis. "We do not think capital controls are likely, but. This article first appeared in Corporate, The Edge Malaysia Weekly, on July 25 - 31, IS the private sector in the driving seat of Corporate Malaysia.

Apparently not, new research by a renowned academic shows, because the government controls a significant portion of it. This may not be immediately obvious but if one considers the sheer weight of involvement by government-linked companies.

Shaded inserts examine case studies in capital controls: the U.S. Interest Equalization Tax ofthe Chilean Encaje of the s, and the restrictions imposed by Malaysia in September Some right-wingers have claimed that anyone with a good word for Malaysian capital controls (me in particular) is also in effect an accomplice in the imprisonment, on what certainly sound like.

KUALA LUMPUR (Oct 16): Bank Negara Malaysia (BNM) governor Datuk Seri Nor Shamsiah Mohd Yunus has said Asian countries facing increased market volatility need the option to use capital controls to pre-empt financial crises.“Countries in this region should be allowed to use capital flow regimen policies as a legitimate policy tool that can be deployed in a pre-emptive manner to deal .