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THAI CENTRAL BANK URGED TO ADJUST CONCEPTUAL FRAMEWORK.

AsiaPulse News

| August 01, 2008 | COPYRIGHT 2008 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

BANGKOK, Aug 1 Asia Pulse - The Bank of Thailand (BoT) should adjust its conceptual framework on a way to solve economic woes the country is facing now, according to a leading economist.

Speaking at a seminar on "The Future of the Thai Economy Under New Economic Geology," former finance minister Virabongsa Ramangkura said the Thai economy had been unusually affected by hefty oil prices and surging inflation rates.

He said he believes that the central bank's decision to solve the economic problems through its monetary policy had mistakes and led to economic crisis on several occasions.

Yet many observers fear that the Ministry of Finance, which supervises monetary policy, could bring about economic complications and troubles if it intervenes in the central bank's performance.

But, he emphasised, the fiscal policies adopted by the ministry to solve the economic ...

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