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Ten Years After the Financial Crisis in Thailand: What Has Been Learned or Not Learned?
Author(s) -
SUSSANGKARN Chalongphob,
VICHYAD Pakorn
Publication year - 2007
Publication title -
asian economic policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.58
H-Index - 20
eISSN - 1748-3131
pISSN - 1832-8105
DOI - 10.1111/j.1748-3131.2007.00055.x
Subject(s) - transparency (behavior) , economics , financial crisis , strengths and weaknesses , financial sector , financial system , finance , economic policy , financial management , financial stability , macroeconomics , political science , philosophy , epistemology , law
The 1997 financial crisis provided many lessons about the weaknesses of Thailand's economic and financial system before the crisis, weaknesses that eventually led to the crisis. Since then, these lessons have led to many economic and financial reforms. This paper reviews the lessons and reforms that have been carried out. These include improvements to the data system needed for adequate macroeconomic monitoring, changes to the macroeconomic management framework and monetary policy regime, and various aspects of financial sector reforms. This paper also indicates the lessons that might not yet have been sufficiently learned and new risks to future economic stability. These include political interference in financial institutions, leading to inappropriate or excessive lending, and lack of transparency in fiscal liabilities that could mislead macroeconomic management.