Subject category:
Economics, Politics and Business Environment
Published by:
Harvard Business Publishing
Version: 23 April 2003
Length: 31 pages
Data source: Field research
Abstract
On 1 September, 1998 the government of Malaysia imposed currency and capital controls in response to the financial crisis that had swept Asia. The controls sparked an enormous controversy in the world of international finance. Some celebrated the controls for insulating the Malaysian economy from the unstable international financial system. Others criticized the controls for trapping investors and allowing the government to protect the interests of 'cronies'. This debate also raised the central question about the future of the international financial architecture: What is the appropriate balance between financial market freedom and government discretion in the management of the global economy?
Subject category:
Economics, Politics and Business Environment
Published by:
Harvard Business Publishing
Length: 24 pages
About
Abstract
On 1 September, 1998 the government of Malaysia imposed currency and capital controls in response to the financial crisis that had swept Asia. The controls sparked an enormous controversy in the world of international finance. Some celebrated the controls for insulating the Malaysian economy from the unstable international financial system. Others criticized the controls for trapping investors and allowing the government to protect the interests of 'cronies'. This debate also raised the central question about the future of the international financial architecture: What is the appropriate balance between financial market freedom and government discretion in the management of the global economy?
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Subject category:
Economics, Politics and Business Environment
Published by:
Harvard Business Publishing
Length: 24 pages