Remarks from the Thailand Crisis - 700 Words

Remarks from the Thailand Crisis From the analysis of the causing factors of the Thailand currency crisis in 1997, several remarks are made in order to provide recommendations. It is hoped that these recommendations would help avoid future financial crisis similar to the 1997. Sequence of Financial Liberalization Thailand’s economies before the financial crisis have put a lot of weights on exports and the baht’s stability was the key to the export ratios. Generally speaking, changes in foreign exchange rate and financial liberalization would trigger a significant impact on the fluctuation of the currency, as well as the country’s export revenues. According to Hansanti, financial liberalization (foreign exchange reformation included) that†¦show more content†¦If the cost of maintaining the fixed system exceeds the benefit, government should not delay its review on the appropriateness of the exchange rate system, in order to reduce the risk of having a currency crisis similar to the Thailand 1997’s. Control on Capital Flows The financial liberalization adopted by Thailand government has loosened control of the capital. Loosen control on capital inflow reduces the costs of borrowing and leads to excessive lending and borrowing at the same time (Hansanti, 2005, p171). In Thailand, capital inflows went to unproductive and inflated sectors such as the real estate, not benefiting the country’s economies in the long run. Poor control of capital outflows has weakened the domestic financial sector when there is no cost for fund movement out of the country (Hansanti, 2005, p171). To improve the stability of domestic financial market, government should have certain degree of control on capital inflows and outflows. For instance, according to Oliver, control on capital outflows can be used to limit the downward pressure on currencies and it is â€Å"mainly applied to short-term capital transactions to counter speculative flows that threaten to undermine the stability of the exchange rate and deplete foreig n exchange reserves† (u.d.). In summary, capital control is used to insure monetary and financial stability duringShow MoreRelatedBill Clintons Doctrine of Enlargement of Foreign Policies2039 Words   |  9 PagesBill Clinton’s Doctrine of Enlargement of Foreign Policies Tommy Wong American History Mr. McCarthy May 2, 2011 During his inauguration from 1993 to 2001, United States President William Jefferson Clinton, also known as Bill Clinton, promoted democracy and improved foreign relationships by using non-aggressive policies. These policies were based on Clinton’s belief and principle, which was also known as the Doctrine of Enlargement. The Doctrine of Enlargement asked for a free competition in globalRead MoreThe First Years of the Peace Corps Essay1180 Words   |  5 Pagesof the volunteers in Nigeria helped make a positive difference in the people’s lives. Countless numbers of other countries benefited from these programs. In Morocco, volunteers were given various activities such as irrigation projects to teaching physical education. In addition, the Peace Corps built libraries, taught English, and founded Kindergartens in Iran from 1962 to 1976. The programs of the Peace Corps not only helped third world countries develop, but also provided disaster relief. In 1968Read More Inte rnational Reserve System: Is it Feasible? Essay3030 Words   |  13 Pageswould be the European Central Bank, which consists of a executive board and the central bank governors from the 11 Euro nations and is based on the Fed system. What is most appealing about this version is its independence from political control. This is so because its charter can only be changed by legislation, where the Maastricht Treaty would have to be altered and have a unanimous agreement from all the signatories of the treaty.[2] [1] Federal Reserve Bank, Boston 2002, http://www.bos.frbRead More The Oppressed People of Burma Essays2972 Words   |  12 Pagesintervening in Burma’s issues to help its people. As these occurrences are a major issue for the people of Burma, these problems are not restricted to its boundaries. They are also becoming a problem for some of Burma’s neighboring countries such as Thailand. With a quick look at current events, it is clear that the oppression of the native people in Burma is still in its most intensive state. But first, an introduction of Burma’s background will spark interest as to how a culturally rich country couldRead MoreTourism and Malaysia4126 Words   |  17 PagesAsia spanning from approximately 1ËšN to 6Ëš45ÃŒ ÃŒ Ã ´N latitude and 99Ëš36Í ´E to 104Ëš24Í ´E longitude, consisting of thirteen states and three Federal Territories, with a landmass of approximately 329,845 square kilometres (127,354 sq mi). The country is divide d into two parts: Peninsular Malaysia and Malaysia Borneo â€Å"also known as East Malaysia† by the South China Sea. Malaysia gained its independence on 31st August, 1957. It is surrounded by many countries in Southeast Asia such as: Thailand in the northRead MoreThe Economic And Political Openness Of Globalization2100 Words   |  9 Pagesmobile phone mobs, coordinated antimilitary demonstrations with student leaders and one another by cellular phone. In Indonesia in 1998, anti-Suharto resistance was largely directed via the Internet. (Dalpino) To deny that technology has brought people from all over the word together is a mistake. Globalization has universalized the world and has made it tremendously difficult to avoid and overlook human rights violations in developing countries and in utilitarian countries. Bringing different culturesRead MoreThe Correlation Of Indian Stock Market2436 Words   |  10 Pagesthereby creation them attractive to foreign investors. As a result these economies customary a large inflow of funds and experienced a theatrical run-up in asset prices. As a part of market amalgamation, the capital market of India is no longer cut off from international economic measures and their stock index travels. This paper finds the correlation of Indian Stock market with five other major Asian economies: Japan, Singapore, Hong Kong and Korea. A weak correlation concludes that the Indian stockRead MoreHousing Policy4885 Words   |  20 Pages3 million. By the year 2030 Melbourne’s population is set to reach 6 million and by 2051 the population will jump to 7.8 million. With population growth of this magnitude the demand on housing will undoubtedly increase. In 2014, in his opening remarks at the Bundesbank/German Research Foundation/IMF Conference, Mr Min Zhu, Deputy Director of the International Monetary Fund (IMF) stated remarked: â€Å"Housing booms have different characteristics across countries and time periods. What is common isRead MoreThe Impact Of Australian Foreign Policy On The Contemporary Global Market2053 Words   |  9 Pageslimited to; economic globalisation, peacekeeping missions, security, anti-terrorism strategies, establishment and maintenance of trading links, enforcement of international protocols, and more recently environmental activism. As more global firms emerge from and relocate to Asia, economies of the region have vastly improved rendering it as a new major global hub in terms of production. This has created opportunities for Australia to support increasing demand in the region for food and raw materials, leadingRead MoreRohingya Problem in Bangladesh6891 Words   |  28 PagesIntroduction The  Rohingya people  are an  Indo-Aryan  ethnic group from the state of  Rakhine  (also known as Arakan, or  Rohang  in the Rohingya language) in Burma. The Rohingya are ethno-linguistically related to the Indo-Aryan peoples of  India  and Bangladesh  (as opposed to the majority Sino-Tibetan people of Burma). The region of Rakhine was annexed and occupied by Myanmar in the 1700s, thus bringing the Rohingya people under Burmese rule. As of 2012, 800,000 Rohingya live in Burma. According to the