A research seminar by Prof. Vimut Vanitcharearnthum, Associate Professor, Faculty of Commerce and Accountancy, Chulalongkorn University, Thailand was held on February 18, 2021.
Topic – Macroeconomic Problems vs. Development Concerns: Case Study of Thailand
The high cost of living and lack of jobs bring misery to all walks of life. To help us monitor the severity of economic problems, Arthur Okun constructed the so-called “misery index”, a sum of the inflation rate and unemployment rate. Thailand is often regarded as the least miserable country in the world, thanks to its extremely low unemployment rate and low inflation rate. In this seminar, I will discuss the misery index of Thailand and its development in recent years.
The inverse relationship between the inflation rate and the unemployment rate is a cornerstone of modern macroeconomic theory. It in effect places limitations on public policies aimed to curb the misery index. I will share my thoughts on the effectiveness of the Bank of Thailand’s policies over the past decades.
Fighting inflation and unemployment has implications on economic development in Thailand, in particular, poverty reduction and income distribution. I will provide some thoughts on growing inequality in Thailand in this seminar.