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Thailand's Macroeconomic Policy after July 1997

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  • Bhanupong Nidhiprabha

    (Thammasat University Faculty of Economics 2 Prachan Road Bangkok 10200 Thailand)

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    Abstract

    The Bank of Thailand could have eased its monetary policy to prevent a slowdown in 2001. An expansionary monetary policy or budget deficit financed by money creation can spur growth in Thailand during recession, provided the Thai central bank does not intervene in the foreign-exchange market. The baht-dollar exchange rate cannot be disengaged from the yen-dollar rate by central bank intervention in the long term. Monetary policy seems to be more effective than other policy alternatives during the current debt deflation episode in Thailand. Copyright (c) 2003 Center for International Development and the Massachusetts Institute of Technology.

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    Bibliographic Info

    Article provided by MIT Press in its journal Asian Economic Papers.

    Volume (Year): 2 (2003)
    Issue (Month): 1 ()
    Pages: 158-168

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    Handle: RePEc:tpr:asiaec:v:2:y:2003:i:1:p:158-168

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