The Journal of the Siam Society Vol. LXIV, Part 1-2, 1976 - Khamkoo

REVIEWS 407
Model" is extremely difficult for a non-econometrician to understand and
tlle conclusions are not clearly stated. However, it does broadly support
the Bank of Thailand's monetary policy in the 1960s when Khunying
Suparb and Dr. Puey were most active. Sataporn Jinachitra's short
essay on money supply (pp. 115-121) emphasises the importance of the
monetary base.
The final paper in the Finance section by Supachai
Panitchpakdi "Inflation: The Case of External Disturbances" (pp. 123-
138) provides a very interesting model of the Thai inflation and balance
of payments deficits, which bas been confirmed by events in 1975
(p. 136) :-
"With prtce rise the trade deficit widens which is mainly due to
the increase in the demand for international goods because of the
rise of nominal income."
A better description of events in 1974-1975 could hardly be imagined.
Part 4 ·'Trade" opens with Dr. Ammar Siamwalla's essay "A History
of Rice Price Policies in Thailand" ( pp. 141-165). This paper not only
has a very valuable policy appendix giving a chronology of Thai rice
policy 1955-1973 but is analytically clear in summarising the foundations
of the policy on price (p. 147):-
"Tbe basic elements of control used by the Thai Government to
regulate rice prices were as follows:-
a) Premium rates
b) Quantitative controls on export volumes, including
outright ban on exports
c) Government-to-government sales."
He is excellent on the mismanagement of rice policy from 1972's poor
harvest into 1973 (p. 155):-
"For most Thai consumers, standing in line for any commodity is
an indignity, doing so for rice is an affront to their sense of
decency. The government (Field Marshal Prapass (my insertion)
was oushed into action."
However, Dr. Ammar is reluctant to admit the full extent of the diversification
of Thai agriculture (p. 157):-
"From being a monocultural economy, Thailand now has a
somewhat more diversified structure."