We are experiencing a supply-side crisis. The lockdown is inducing labor shortage, and it has the potential of exerting lasting damage on the economy if not handled properly. It seems to me that the last time Malaysia or any of its components had a supply crisis was in the 1940s during World War II and […]

How do you stimulate an economy during a period of intense social distancing or partial lockdown, with many workers not working, a majority of productions offline and most movements restricted? It is the ultimate supply-side disruption. Malaysia has just announced a movement restriction order, which is an eventuality especially given the 3-week the government came […]

January inflation clocked at only 1.0% from a year ago while in December it was 2.7%. That was a pretty drastic slowdown that I bet someone will cry deflation wolf somewhere soon. The cause of the slackening is easy to explain. It is unambiguously due to the drop in retail petrol and diesel prices. RON95 […]

Approximately 40 years after the debate began, the battle between supply-siders and the Keynesians (and to some extent, monetarists) continues. It first came to surface with Bruce Barlett’s article at the NYT: Today, hardly any economist believes what the Keynesians believed in the 1970s and most accept the basic ideas of supply-side economics — that […]