Immediate Resolutions
The most immediate crisis resolution measure that was unavoidable because of the country's insolvency was the need to abandon the fixed exchange rate system and adopt a floating exchange rate system. Thailand also needed foreign exchange liquidity support from the IMF.The IMF package amounted to $US17.2 billion and was tied to IMF conditionality. Thailand was required to adopt many policy reforms, such as fiscal and monetary tightening, as well as structural of the financial and real sectors, such as increased prudential standards, improved governance, foreign access, and privatization.
These various measures were meant to restore confidence as well as generate increases in foreign currencies so that the country could eventually recover from the insolvency position. However, the nature of the IMF conditionality that was applied to Thailand (and also to Indonesia and South Korea) was rather controversial and was much debated in the aftermath of the crisis. Critics point to a number of areas, such as :
Immediate ResolutionsThe most immediate crisis resolution measure that was unavoidable because of the country's insolvency was the need to abandon the fixed exchange rate system and adopt a floating exchange rate system. Thailand also needed foreign exchange liquidity support from the IMF.The IMF package amounted to $US17.2 billion and was tied to IMF conditionality. Thailand was required to adopt many policy reforms, such as fiscal and monetary tightening, as well as structural of the financial and real sectors, such as increased prudential standards, improved governance, foreign access, and privatization.These various measures were meant to restore confidence as well as generate increases in foreign currencies so that the country could eventually recover from the insolvency position. However, the nature of the IMF conditionality that was applied to Thailand (and also to Indonesia and South Korea) was rather controversial and was much debated in the aftermath of the crisis. Critics point to a number of areas, such as :
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