His call for curbs on currency speculation would be hard to implement. Indeed, currency swings can play havoc with the ability of consumers to buy imported goods or businesses to expand abroad. And he has accused Mr. Soros of engineering the currency crisis that has seen the purchasing power of many Southeast Asian countries fall by as much as 30 percent since July. He said he has actually been betting that currencies like Malaysia's ringgit will strengthen, not depreciate. Dr. Mahathir is a menace to his own country.
Most economists tend to agree with the financier.
The IMF and World Bank maintain they warned Thailand and Malaysia ahead of time that their currencies were vulnerable because of underlying economic weaknesses, such as troubled banks or overambitious government spending. Observers also say that Mahathir's proposal to eliminate the currency markets is impractical. Then the currency license must be issued, then the currency must be sold. Capital controls like these would increase the cost of doing business in more than one way, Mr. Kenen adds. Business leaders at the meeting echoed his concerns.