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Actually, that it suspend the EU's internal market rules while staying in the Euro:

On Malaysia's answer:

"We bailed out our companies, but that worked simply because we applied currency control with a fixed exchange rate."

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan

by Migeru (migeru at eurotrib dot com) on Wed May 26th, 2010 at 01:52:51 PM EST
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Yes, that's certainly an implication applicable to Greece and its relationship with the EU.  But what Mahathir actually says here is that they didn't maintain a fixed currency. Rather, that they devalued it:

Even Malaysia had to accept being poorer when we fixed the exchange rate at RM3.80 to US$1 from RM2.50 before the crisis. Our GDP and per capita income were lowered in US dollar terms.

By Mahathir's own recollection, it's not the fixed part that allowed Malaysia to cure itself without IMF austerity.  It's the fact that it retained it's own monetary policy, which Greece doesn't have anymore, like Krugman keeps saying.

by santiago on Wed May 26th, 2010 at 03:23:33 PM EST
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