tag:blogger.com,1999:blog-5014075006969917149.post7062320442354815212..comments2024-03-17T05:58:44.116+08:00Comments on Economic Policy: Malaysia's Problems V: Weak Currency & RM1 TrillionUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5014075006969917149.post-14753722692491057182009-06-20T02:15:04.924+08:002009-06-20T02:15:04.924+08:00Post is up!
http://econsmalaysia.blogspot.com/200...Post is up!<br /><br />http://econsmalaysia.blogspot.com/2009/06/weak-or-strong-myr-policy-i-say-neither.htmlhishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-5014075006969917149.post-84151107960874088642009-06-19T23:31:24.370+08:002009-06-19T23:31:24.370+08:00Thanks, but the RM2.63 isn't my estimate but f...Thanks, but the RM2.63 isn't my estimate but from the article. For comparison's sake, the PPP-implied exchange rates for MYR/USD are 1.967 (IMF), 2.105 (World Bank), and 1.28 (Penn World Tables).<br /><br />Also, I'm afraid I'm going to pick a few holes in your argument too!<br /><br />Hope you don't mind.hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.comtag:blogger.com,1999:blog-5014075006969917149.post-52345065176375323162009-06-19T23:24:06.015+08:002009-06-19T23:24:06.015+08:00hishamh,
Thanks.
The references are indeed encou...hishamh,<br /><br />Thanks.<br /><br />The references are indeed encouraging.<br /><br />Your estimate of RM2.63 to the USD looks reasonable to me.<br /><br />For those of us who were working in the late 1980s and early 1990s, we were happy with RM2.70 (that has always been in my mind to be the eqilibrium rate) before the short-term capital flows raised it to RM2.50.<br /><br />The aberrant was the outflow which pushed it down to RM4.80. But before the currency speculators could unwind, the adjustment was killed at RM3.80.<br /><br />The current dirty float is a serious defect in the economy, as it artificially tries to boost the economy - but prevented it from going further up the value chain.<br /><br />If you can do further work on it, I shall be happy to learn from it.<br /><br />(I shall repeat these comments in your blog.)etheoristhttps://www.blogger.com/profile/03412913576145631384noreply@blogger.comtag:blogger.com,1999:blog-5014075006969917149.post-51472527047019606952009-06-19T15:13:09.265+08:002009-06-19T15:13:09.265+08:00Here's some ammumition for you:
http://www.vo...Here's some ammumition for you:<br /><br />http://www.voxeu.org/index.php?q=node/3666<br /><br />and my analysis of it:<br /><br />http://econsmalaysia.blogspot.com/2009/06/currencies-and-current-account.html<br /><br />I'll have some further comments later!hishamhhttps://www.blogger.com/profile/06265308095732759923noreply@blogger.com