Construction of a macro-economic model for the Thai economy at the Bank of Thailand was initially started in 1974. Since then effort has continued to improve and modify its structure and performance until the required standard of practical applicability was attained in 1979. This 1979 BOT model has undergone some minor modifications, but fundamentally its structure is still kept in the Bank for the purpose of forecast and policy evaluation. The model consists of two key blocks; namely, the real and financial blocks. They are lilnked together through the adjustments of incomes, prices and interest rate. For illustration, however, only the real block is discussed here, while the financial transactions are treated exogenously.
KeywordsInterest Rate Capital Stock Price Elasticity Export Price Import Demand
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- Chaipravat O, Meesook K, Ganjarerndee S (1979) Bank of Thailand model of the Thai economy. Bank of Thailand Discussion Paper, no DP/79/25, FebruaryGoogle Scholar