IMF Occasional Paper No. 207

• Pages: 5-

Page 5

Malaysia: From Crisis to Recovery, 1997-2001

Kanitta Meesook, Il Houng Lee, Olin Liu, Yougesh Khatri, Natalia Tamirisa, Michael Moore, and Mark H. Krysl

Malaysia's approach to handling the Asian crisis during 1997-2001 raised much debate about the policy options available to emerging markets for crisis management. This new study reviews Malaysia's approach-which included a fixed exchange rate regime and the introduction of capital controls-and outlines key policy issues confronting the Malaysian authorities at the time of the crisis. Attention is given to the policy mix that helped the economy to recover and the implications for future crisis prevention and management. The authors estimate Malaysia's potential output and provide an analysis of the economy's...