{"id":1176,"date":"2007-04-12T00:12:58","date_gmt":"2007-04-11T16:12:58","guid":{"rendered":"http:\/\/maddruid.com\/?p=1176"},"modified":"2009-07-17T16:26:16","modified_gmt":"2009-07-17T06:26:16","slug":"1172-of-pressure-for-liberalization-builds-up","status":"publish","type":"post","link":"https:\/\/maddruid.com\/?p=1176","title":{"rendered":"[1172] Of pressure for liberalization builds up"},"content":{"rendered":"<p>The International Herald Tribune, one of many, picks up a report by Associated Press:<\/p>\n<blockquote><p>KUALA LUMPUR, Malaysia: Foreign funds inflows are keeping Malaysia&#8217;s markets on a long rally, but the money is staying in the country because of central bank restrictions and is starting to create economic imbalances, analysts say.<\/p>\n<p>The local currency, the ringgit, is not allowed to be traded offshore, which means currency transactions are limited to within Malaysia. That has created a massive pool of money. [<a href=\"http:\/\/www.iht.com\/articles\/ap\/2007\/04\/09\/business\/AS-FIN-Malaysia-Currency-Rules.php\" target=\"_blank\"><em>Awash in foreign funds, Malaysia faces economic imbalances over central bank restrictions<\/em><\/a>. AP via IHT. April 8 2007]<\/p><\/blockquote>\n<p>Too much many chasing too few capital is a classic, or rather, a textbook recipe for inflation, as mentioned in the same report:<\/p>\n<blockquote><p>The excess cash in the country is leading to inflationary pressures as there is more money than before, chasing the same amount of goods. [<em>Awash in foreign funds, Malaysia faces economic imbalances over central bank restrictions<\/em>. AP via IHT. April 8 2007]<\/p><\/blockquote>\n<p>Further in the article:<\/p>\n<blockquote><p>Speculation is now mounting that Bank Negara might eventually lift a curb on the offshore trading of the ringgit that was imposed in 1998 during the Asian financial crisis.  [<em>Awash in foreign funds, Malaysia faces economic imbalances over central bank restrictions<\/em>. AP via IHT. April 8 2007]<\/p><\/blockquote>\n<p>It is time to dump our neomercantilist policy in favor of liberal ones.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The International Herald Tribune, one of many, picks up a report by Associated Press: KUALA LUMPUR, Malaysia: Foreign funds inflows are keeping Malaysia&#8217;s markets on a long rally, but the money is staying in the country because of central bank restrictions and is starting to create economic imbalances, analysts say. The local currency, the ringgit, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[74,552],"class_list":["post-1176","post","type-post","status-publish","format-standard","hentry","category-economics","tag-inflation","tag-mercantilism"],"_links":{"self":[{"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/posts\/1176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maddruid.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1176"}],"version-history":[{"count":2,"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/posts\/1176\/revisions"}],"predecessor-version":[{"id":4722,"href":"https:\/\/maddruid.com\/index.php?rest_route=\/wp\/v2\/posts\/1176\/revisions\/4722"}],"wp:attachment":[{"href":"https:\/\/maddruid.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maddruid.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maddruid.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}