What policies were necessary to restore balance

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Leading up to the crisis of 1997, Thailand had a current account deficit and an economy that was close to full employment, but possibly somewhat above full employment (i.e. there were signs of inflation starting). Where would you put Thailand on the IIXX model. What policies would you say were necessary to restore balance ?

Say every country uses gold as money and there are no barriers to capital or trade flows (and prices are flexible). If a country suddenly discovers more gold, will this permanently increase their money supply?

Reference no: EM13224056

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