Financial policies and the middle class in the Turbulent World Economy

 Dean of Faculty of Economics, Chiang Mai University, President of Provident Fund Association 

Dr. Pisit Leeahtam's CV

At the early stage of development for developing countries, where the bulk of populations are either poor or at working class level, the conducts of fiscal and monetary policies would have little impacts to the country’s aggregate demand and thus the change of GDP. At this stage, development economics are relevant to provide the framework for the conduct of economic policies, particularly on the supply side. However, as the countries graduate to higher income ladders with more population in the middle class levels, the conducts of fiscal and monetary policies would be more relevant to steer aggregate demand.