This paper first documents the recent changing landscape of Thailand's financial sector, noting in particular the decline in bank credit intensity of production. It discusses the reasons behind the observed trend of bank disintermediation and analyzes whether these factors are likely to persist...

The current configuration of global imbalances, the financing that they entail, and the possible economic fallout that may occur as they unwind have become hot topics of discussion lately and understandably so since the scale and number of countries involved are unprecedented. The aim of this...

This paper attempts to conceptualize the debate regarding the role of asset prices and perceived financial imbalances in the formation of monetary policy from the perspective of theoretically optimal policy responses. While much of the disagreement can be reconciled within the framework of...

This paper aims to outline the role that effective exchange rates, both real and nominal, play in Thailand’s monetary policy framework. It discusses some of the applications that effective exchange rates have been applied to in practice, highlighting some of the limitations that often arise....

In this study, a computable general equilibrium model is developed and is used as a tool for measuring and analysing structural changes in the Thai economy. The technique of historical simulation is used to trace the patterns of structural changes during 1990 to 1995. These patterns of...

Dramatic declines in inflation rates across Asia and falling prices in some countries have recently heightened fears of deflation. This paper aims to shed light on this issue by reviewing the cross-country evidence in Asia and highlighting key observations about recent price developments in the...