IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/440.html
   My bibliography  Save this paper

Financial sector policy in Thailand : a macroeconomic perspective

Author

Listed:
  • Easterly, William
  • Honohan, Patrick

Abstract

The recent Thai boom has been accomplished in an economy with considerable openness to external forces. Despite the fiscal correction achieved during 1986-89, the domestic demand expansion has made itself felt in a widening of the current account deficit. While this deficit partly reflects the need for a surge of capital expenditure to avail of export prospects and to provide the necessary infrastructure, care will have to be taken to ensure that investment does not get too far out of line with the long-run savings potential of the economy. The ability of the Thai financial sector to provide the investible funds that are demanded by the boom is influenced by its ability to mobilize savings, by official policy regarding credit allocation and by the degree to which capital is free to flow internationally. Resource mobilization in Thailand is impressive : its liquidity ratio is surpassed by only a handful of developing countries. The authors have made a number of recommendations for the further development of monetary policy instruments and for the recasting and reduction of quasi-fiscal and credit allocation impositions on the financial system.

Suggested Citation

  • Easterly, William & Honohan, Patrick, 1990. "Financial sector policy in Thailand : a macroeconomic perspective," Policy Research Working Paper Series 440, The World Bank.
  • Handle: RePEc:wbk:wbrwps:440
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1990/06/01/000009265_3960929095344/Rendered/PDF/multi_page.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jansen, W. Jos, 2003. "What do capital inflows do? Dissecting the transmission mechanism for Thailand, 1980-1996," Journal of Macroeconomics, Elsevier, vol. 25(4), pages 457-480, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:440. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.