We are back and tomorrow, the Department of Statistics Malaysia will be releasing the second quarter GDP figures. Without further ado… And… what. A. Ride. It. Has. Been. Politics. Economics. The result is… there is no doubt the second quarter GDP figures will be terrible with a capital T. The question now will be by […]

It is the final GDP release before the year goes to the dogs! The Department of Statistics will announce the fourth quarter figures tomorrow at noon. Before that, let us play a game: For some context, the year 2017 was a pretty good year for GDP growth. It came after a pretty bad two-year period […]

Both the GDP and the CPI numbers for Malaysia were released yesterday. Real GDP growth grew by 5.4% in the second quarter from a year ago. Although I suspected that growth would be strong due to strong showing in the industrial production index, I found 5.4% as surprising still. It was too strong for whatever […]

One impact of minimum wage is the general increase in labor supply in the market. Let us be clear and not talk too generally or loosely. Precision is key. I think if you cannot be clear, then it is very likely that you do not understand or have not thought of the issue well enough. […]

In the short run when (nominal) prices are not so flexible, there will be a trade-off between (nominal) minimum wages and unemployment rate. The mechanics is simple. If businesses cannot change the price they charge their customers, they will optimize their cost. Since a person’s real wage theoretically equals the person’s marginal product of labor […]

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