Macro Volatility and Financial Crisis in Thailand : Some Historical Evidence

This paper uses national income identity to explain the causal relationships among Thailand's aggregate volatility, deficient financial structure, financial liberalization, and financial crisis in this country. Relatively good macroeconomic policies and diversified structure were able to compen...

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Main Author:	Pholphirul, Piriya
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Macroeconomics: Production E230 Business Fluctuations Cycles E320 Financial Markets and the Macroeconomy E440 Mergers Acquisitions Restructuring Voting Proxy Contests Corporate Governance G340 Macroeconomic Analyses of Economic Development O110 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Fiscal and Monetary Policy in Development O230
Online Access:	http://hdl.handle.net/10986/4840

id	okr-10986-4840
recordtype	oai_dc
spelling	okr-10986-48402021-04-23T14:02:19Z Macro Volatility and Financial Crisis in Thailand : Some Historical Evidence Pholphirul, Piriya Macroeconomics: Production E230 Business Fluctuations Cycles E320 Financial Markets and the Macroeconomy E440 Mergers Acquisitions Restructuring Voting Proxy Contests Corporate Governance G340 Macroeconomic Analyses of Economic Development O110 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Fiscal and Monetary Policy in Development O230 This paper uses national income identity to explain the causal relationships among Thailand's aggregate volatility, deficient financial structure, financial liberalization, and financial crisis in this country. Relatively good macroeconomic policies and diversified structure were able to compensate for financial imperfections and weak corporate governance in the financial sector in the period 1970-90. Under these conditions, real GDP growth was positive, inflation was relatively low, and consumption was relatively less volatile than GDP. The 1997 crisis, however, severely affected the ability of central authorities to smooth fluctuation. Investment and consumption volatility increased substantially. This implies that, when counter-cyclical policies are difficult to implement and incomplete markets exist, it is much more difficult to stabilize consumption. 2012-03-30T07:30:00Z 2012-03-30T07:30:00Z 2009 Journal Article ASEAN Economic Bulletin 02174472 http://hdl.handle.net/10986/4840 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Thailand
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Macroeconomics: Production E230 Business Fluctuations Cycles E320 Financial Markets and the Macroeconomy E440 Mergers Acquisitions Restructuring Voting Proxy Contests Corporate Governance G340 Macroeconomic Analyses of Economic Development O110 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Fiscal and Monetary Policy in Development O230
spellingShingle	Macroeconomics: Production E230 Business Fluctuations Cycles E320 Financial Markets and the Macroeconomy E440 Mergers Acquisitions Restructuring Voting Proxy Contests Corporate Governance G340 Macroeconomic Analyses of Economic Development O110 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Fiscal and Monetary Policy in Development O230 Pholphirul, Piriya Macro Volatility and Financial Crisis in Thailand : Some Historical Evidence
geographic_facet	Thailand
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper uses national income identity to explain the causal relationships among Thailand's aggregate volatility, deficient financial structure, financial liberalization, and financial crisis in this country. Relatively good macroeconomic policies and diversified structure were able to compensate for financial imperfections and weak corporate governance in the financial sector in the period 1970-90. Under these conditions, real GDP growth was positive, inflation was relatively low, and consumption was relatively less volatile than GDP. The 1997 crisis, however, severely affected the ability of central authorities to smooth fluctuation. Investment and consumption volatility increased substantially. This implies that, when counter-cyclical policies are difficult to implement and incomplete markets exist, it is much more difficult to stabilize consumption.
format	Journal Article
author	Pholphirul, Piriya
author_facet	Pholphirul, Piriya
author_sort	Pholphirul, Piriya
title	Macro Volatility and Financial Crisis in Thailand : Some Historical Evidence
title_short	Macro Volatility and Financial Crisis in Thailand : Some Historical Evidence
title_full	Macro Volatility and Financial Crisis in Thailand : Some Historical Evidence
title_fullStr	Macro Volatility and Financial Crisis in Thailand : Some Historical Evidence
title_full_unstemmed	Macro Volatility and Financial Crisis in Thailand : Some Historical Evidence
title_sort	macro volatility and financial crisis in thailand : some historical evidence
publishDate	2012
url	http://hdl.handle.net/10986/4840
_version_	1764392963754950656

Macro Volatility and Financial Crisis in Thailand : Some Historical Evidence

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