Category: Uncategorized
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Why Bank Negara Malaysia should just let the ringgit do its thing – to float freely (Part 3)
In part 2, I wrote about how BNM ultimately will hit the trilemma wall if it decides to “control” the ringgit. In part 3, I will write about what the exchange rate means to Malaysia and how it does not reflect fully the state of the economy. This is entirely…
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Why Bank Negara Malaysia should just let the ringgit do its thing – to float freely (Part 2)
In part 2, I will attempt to explain the monetary arrangements that are being pursued by BNM and how ultimately its hands are tied in relation to what the institution wants to achieve. In the economics field specifically monetary policy, there is a an empirically proven tri-lemma that exists for…
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Why Bank Negara Malaysia should just let the ringgit do its thing – to float freely (Part 1)
Much has been said over the months from the years of 2014-2015 about the weakness of the ringgit, about how its decline should be controlled by the various governmental institutions (Bank Negara Malaysia), or more extreme, the pegging of the ringgit to a major currency or a basket of currencies.…
Slice of P.I.E 