I shall in two examples illustrate how the slope of the Phillips curve is affected by two different exogenous changes. 16 The two examples aim to illustrate how the slope can be negative or positive, depending on which exogenous changes are driving economic developments. My hypothesis is thus that the flatter Phillips 15 An example of a true exogenous change that is sometimes mentioned is the weather, but weather is of course of less significance in today’s developed economies than it was during the days of the agricultural society. 16 For a description of the theory I have used, see Jonsson and Theobald (2019). This study also contains other examples than the ones I show here, which illustrate other possible causes of the flatter Phillips curve. 10 [24]  curve may be due to the economy being exposed to different types of exogenous changes after the financial crisis than before it, which has changed the slope of the Phillips curve in a flatter direction. It is of course difficult to verify this hypothesis in practice, just as it is difficult to verify other possible hypotheses, and this cannot be done today. It would require a more in-depth analysis, where one tries to identify in more detail which exogenous changes have been important prior to and after the financial crisis. In the first example, the exogenous changes are in labour force participation. To illustrate the economic intuition, let unemployment increase as a result of more people entering the labour force.
The Bank of Thailand has been proactive in this aspect. We have already upgraded our cheque clearing system from paper-based to image-based system, namely ICAS in Bangkok and the Metropolitan areas and we will launch the ICAS for the entire country within next year, and the new version of BAHTNET system will also be launched next year. In addition, a policy to set up a system for local switching (i.e. a system for switching, clearing, and settlement of domestic payment transactions via local debit card) has been prescribed, and will come into force within 2013. •  In Long Term (beyond 2015), ASEAN payment and settlement linkage should be explored. Currently, the Bank of Thailand is exploring the potential of linking our payment and settlement systems with that of other countries, such as the linkage with Hong Kong USD CHATS which aims to reduce FX settlement risk. The second consideration is new channel of payment and new technology Advanced development in Information and Communication Technology (ICT) has made it possible for money to move faster and more safely. Important development nowadays is ATM ASEANPay, operated by National ITMX, which already connects ATM system between Thailand and Malaysia. More connections will be made in the future, which will help facilitate retail payment and money remittance across ASEAN countries. Moreover, other payment channels and instruments such as e-banking, e-payment, and mobile payment will play an important role in enhancing efficiency and inclusiveness of financial services.