Imported inflation was the main cause of the high
inflation in Thailand (see table 7). Only 1973-74 and 1980-81 that inflation rate stood more
than two digits. Most of the time, inflation rate was kept in a very low rate. How could it
happen? The strongest macroeconomic stability in price is attributed to two factors. One
explanation argues that the real exchange rate was effectively controlled and well managed by
the Bank of Thailand under the fixed exchange rate regime.