Professor Dr. Suchart Thadathamrongvej Former Minister of Finance comment In addition to the good credit of the leader The government also has the tools that can make the country thrive. More than a private company management tool .. a lot
1. If private companies or people are in debt, it may be because they cannot sell their products. or to borrow to invest too much The company has to apply for a suspension of debt. and go to borrow more money for new investment to produce and sell for profit to settle old debts and build a company to grow
2. But if the country owes a lot The economy is not growing people without work poor people Then the country wants to find “new money” to revive the economy and employment. “The government will have a tool that private companies do not have,” which is to soften their own currency to an appropriate level. will make the things that used to be sold more expensive can be sold at a lower price in the eyes of foreigners without loss Therefore, we can export to foreign countries increase both in quantity and value. and then take that income Come to invest in building a country such as electric train systems, roads, water resources, advanced agriculture, soft power, digital country. without having to borrow much money For example, it happened in Japan, South Korea and China.
3. Monetary policy and exchange rate policy It has a much greater effect than fiscal policy. on growth (GDP), employment, income and people’s status But this matter, the government of General Prayut doesn’t understand. Therefore, there are often governors of the National Bank in the past. (except the present) went to tell the government that “Monetary policy It’s the elephant in the back,” and then went up with high interest rates. and up faster than it should (Which reduces consumption and investment) and makes the baht stronger than usual. All of which resulted in low economic growth, that is, there was a Play Safe before. Many times the baht was too strong. For example, during the year 2018-2019, the baht appreciated to 29 baht per $, making the rate of exports very low, resulting in GDP growth of only 2-3%.
4. This is another important reason. That the government of General Prayut doesn’t understand why 7-8 years ago the Thai economic system did not grow. “unfortunate.. Yes!”