Answer Happy

1 On March 24, Pippa, Minister of Tourism and Sports of Thailand, revealed that the Ministry of Tourism and Sports will propose to the Thailand Epidemic Control Center to relax the measures for foreign tourists to enter Thailand. Specifically, from May 1, the RT-PCR test on the first day of arrival in Thailand will be adjusted to ATK test, and the Thailand Pass system will be cancelled from June 1. After the proposal is passed, overseas travelers will not need to apply for entry into Thailand in the form of "test-and-go" exemptions, sandbox programs or quarantines, and in principle do not need to be tested for the new coronavirus. (Total 20') (1) Please describe the balance of payments theories. (4') (2) If this proposal is successfully implemented, please analyze the short-term and long-term impact of this proposal on the Thai baht (THB) exchange rate based on the balance of payments theories and exchange rate theories. (5) (3) Assume that the Central Bank of Thailand implements a fixed exchange rate regime for the Thai baht, then how the Central Bank of Thailand keeps the THB exchange rate fixed? (6') (4) If the proposal of the Ministry of Tourism and Sports of Thailand is not approved, and the epidemic situation in Thailand has intensified again, please analyze how Thailand's economy will be affected if the central bank is committed to keeping the value of Thai Baht fixed. (5') (20.05))