If Thailand fixes the foreign exchange value of its currency and follows a highly expansionary monetary policy,

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If Thailand follows a highly expansionary monetary policy, it will increase the money supply and potentially create inflationary pressures. However, if Thailand has fixed the foreign exchange value of its currency, it will be unable to adjust its currency to counteract these pressures. This may lead to a loss of confidence in the currency and limit the ability for full convertibility, ultimately hindering economic growth.

If Thailand Fixes the Foreign Exchange Value of Its Currency