Thai Baht Still on a Strengthening Path Near Term, Says Nomura’s Paracuelles

The video discusses the impact of monetary and fiscal policies on Thailand's currency strength, emphasizing that fiscal policy is crucial due to a current account surplus. Despite stimulus measures, economic growth remains below potential, and further rate cuts may be needed. Structural reforms, particularly in public infrastructure and investment, are essential to address financial stability and economic challenges.

What is the main reason for the currency appreciation in Thailand, according to the first section?

• Current account surplus

• Government spending cuts

• Increased foreign investment

• Monetary policy changes

Why is fiscal policy considered more important than monetary policy in addressing Thailand's economic issues?

• It directly affects currency exchange rates

• It can narrow the current account surplus

• It is easier to implement

• It has immediate effects on inflation

What does the second section suggest about the impact of fiscal stimulus on economic growth?

• It has had a limited impact

• It has significantly boosted growth

• It has caused inflation to rise

• It has led to a decrease in unemployment

What might the government consider doing next year according to the second section?

• Raising interest rates

• Further rate cuts

• Reducing public spending

• Increasing taxes

What structural reform is emphasized in the third section as necessary for economic improvement?

• Lowering education standards

• Increasing public infrastructure spending

• Decreasing investment ratios

• Reducing labor costs