World recession and the international financial system: the perspective, problems and prospects

Abstract

The Malaysian Government is embarking on its Mid-Term Review of the Fourth Malaysia Plan 1981-85 in an environment of global recession that has turned out to be much more severe and prolonged than originally expected. Indeed, the new situation and outlook certainly points to an urgent need to re-examine the underlying structure of the Malaysian economy. This paper presents a banker's macroeconomic perspective of the underlying problems and prospects for the world economy and the international financial system in particular. It is confined to the broad international perspective.