• Thanong
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Thanong
Thanong Khanthong
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Wednesday , July 4 , 2007
Mini series on 1997 crisis (8)
Posted by Thanong , Reader : 1173 , 17:57:42  
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The Defence TeamThe baht came under a fierce attack between 1996 and throughout the first half of 1997. Currency traders make money by speculating on its trends or movements.The Thai macroeconomic conditions were in bad shape. The current account deficit hit 8 per cent of the GDP. Short-term debts rapidly soared. The property market was overbuilt. The banks and finance companies were facing a deterio....


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Mini series on 1997 crisis (7)
Posted by Thanong , Reader : 893 , 17:26:50  
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Triangle of Impossibility   In fact, Thailand had been pursuing a policy mix that would not be sustainable. It adopted a free flow of capital, a fixed exchange rate regime, and tried to maintain an independent monetary policy. But the three policies, generally known as the "triangle of impossibility", are mutually exclusive when they are applied simultaneously.In spite of his stature as the....


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Mini series on 1997 crisis (6)
Posted by Thanong , Reader : 942 , 17:06:15  
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The Bubble Came With Easy MoneyPart of the 1997 crisis stemmed from the unforeseen danger of a build-up of short-term capital inflow. The so-called hot money flooded the financial system following a series of financial liberalisation in the early 1990s.The baht became fully convertible through an open capital account. With the currency peg system, which tied the baht to the US dollar, easy credit gre....


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Mini series on 1997 crisis (5)
Posted by Thanong , Reader : 865 , 13:42:36  
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The Myth of Thai GrowthONE of the hedge-fund managers, who laid siege on the Thai currency peg system, reconstructed the unfolding drama behind the collapse of the Thai baht. "We are like wolves on the ridgeline looking down on a  herd  of elk," he said (Eugene Linden, “How to Kill a Tiger,” Time Magazine, (November 3, 1997), page 24-25. In that herd of elk, the hedge-fund managers and inte....


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