Nabi, IjazShivakumar, Jayasankar2013-06-172013-06-172001-060-8213-4949-Xhttps://hdl.handle.net/10986/13973This essay reviews the traumatic experience of Thailand's economy during 1997-1999, describes the policy response, and draws lessons for the future. Whereas the country's economic performance until 1996, was exemplary within the developing world - consistent growing, high gross domestic product rates, exports expansion, and in-flow of foreign capital - the financial downturn of 1997 gave way to a deep economic recession, which diminished asset values, and threatened to unleash large-scale unemployment. The book analyzes the crisis, highlighting the tension, and controversy that surrounded structural reform, and, describes the ongoing legal, regulatory, and institutional reforms - all designed to ensure prudent decision-making by Thai bankers, and corporations. The book concludes with an outline of the steps needed to complete the reform program, in a way that will consolidate the fragile economic recovery, and allow sustained growth. The economic history of the crisis - highlighted in Figure 1-1 - shows the movements of selected indicators of the economy, during this volatile period.en-USCC BY 3.0 IGOASSETSBALANCE SHEETSBANK OF THAILANDBANKING SECTORBANKRUPTCYBORROWINGCENTRAL BANKCOMPETITIVENESSCONTAGIONCORPORATE GOVERNANCECREDIT CULTUREDEBTDEBT RESTRUCTURINGDEBT SERVICEDEBT TO EQUITY RATIOSDEVALUATIONECONOMIC CONDITIONSECONOMIC HISTORYECONOMIC PERFORMANCEECONOMIC RECOVERYEMPLOYMENTEXCHANGE RATEEXPORT GROWTHEXPORTSFINANCIAL CRISESFINANCIAL INSTITUTIONSFINANCIAL SECTORFISCAL POLICYFOREIGN EXCHANGEGDPGROSS DOMESTIC PRODUCTGROSS NATIONAL SAVINGSGROWTH RATEHOUSINGIMPORTSINCOMEINFLATIONINFLATION RATEINTEREST EXPENSEINTEREST RATEINTEREST RATESINTERNATIONAL BANKINGINTERNATIONAL COMPETITIONLABOR COSTSLABOR PRODUCTIVITYLICENSESLIQUIDITYMACROECONOMIC POLICYMACROECONOMIC STABILIZATIONMARKET DISCIPLINEMARKET VALUEMERGERSMONETARY AUTHORITIESMONETARY POLICYMONEY SUPPLYMORAL HAZARDNET WORTHNONPERFORMING LOANSPOLLUTIONPRIVATE CONSUMPTIONPRIVATE SECTORPRODUCTION COSTSPRODUCTION PROCESSESPRODUCTIVITYPROVISIONSPUBLIC POLICYPUBLIC SECTORPUBLIC SPENDINGREAL ESTATE LOANSREAL GDPREAL WAGESRECAPITALIZATIONREGULATORY FORBEARANCESAVINGSSOCIAL COSTSSTREETSSUBSTANDARD LOANSTAXTELECOMMUNICATIONSTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRAFFIC CONGESTIONUNEMPLOYMENTURBANIZATIONWAGESWEALTHWELFARE GAINSWorld Bank10.1596/0-8213-4949-X