International Portfolio Equity Flows and the Malaysian Financial Crisis
Journal of Contemporary Asia, 30(3): 369-401, 2000
Posted: 26 Jun 2013
Date Written: 2000
This paper provides the political economic forces that were unraveling when the speculative attack on the Thai baht drove the contagion catastrophically across East Asia in 1997. While acknowledging the destabilizing effect of volatile exchange rate fluctuations that ensued, this paper discusses the political forces of cronyism and corruption that evolved, alongside the political preference for an expansion in portfolio equity capital accumulation. The paper argues that the expansion in the bubble had masked the quagmire that Malaysia was in when the Asian financial crisis struck.
Keywords: cronyism, corruption, Asian financial crisis, Malaysia
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