Financial Crisis - US Versus Asian: Factors and Policy Response

Abstract:     
The financial crisis which erupted in the United States of America in 2007 drove the real economic sector into a crisis that has diminished the world‘s economic growth thereafter. There is no single theory that can explain what has happened in the US. Even though there were a few financial crises models, however all the models are ― meaningless. Traditional macroeconomic policies were used to restore the distress economy but the policies seemed to be ineffective. In this regards, heterodox economic perspectives may provide some answers in dealing with such economic crisis that have been experienced by the US. The financial crisis experienced in Asia in 1997-98 could provide some ideas for economic crisis solutions. The aim of this paper is (a) to discuss the financial crisis in the US and East Asia 1997/1998, and (b) to look at unorthodox economic policies that could possibly be considered in dealing with the financial crisis.

Number of Pages in PDF File: 19

Keywords: Financial Crisis, Unorthodox Economic Policy, Capital Control, USA, Malaysia

JEL Classification: B50, E60, G01

working papers series