solve this supply bottleneck. it can help foster macroeconomic stability conducive to business investment, but most of the efforts to address supply - side impediments still need to come from a broader and more balanced set of economic policies including fiscal, industrial, technology, and labor market policies. concluding remarks let me end my talk today by saying that, as a central banker, we should be ambitious in making the best use of all available policy tools and in improving our understanding of the economy as well as the shocks driving it. but setting the ambition higher than the capability of monetary policy would likely prove to be counter - productive. it is an old established wisdom that what monetary policy can best deliver is price stability. while we have learned for a great deal about other aspects of macroeconomic stability, there is little disagreement that price stability must remain the central objective of monetary policy in the long run. abandoning this objective risks de - anchoring price expectations and inducing unnecessary economic volatility. the deployment of supplementary tools can go some way to help relax its limitation, but monetary policy is no panacea. ladies and gentlemen, only by understanding both the power and limits of monetary policy, will the economy be able to reap the most benefit out of this policy lever. the bank of thailand will continue to do our utmost to strive for overall macroeconomic stability, and the long - term prosperity of thailand. thank you. bis central bankers ’ speeches

##ing when the world is going through significant transformation, with unprecedented policy actions all across the globe, and with yet - to - be - known consequences of such actions and their unwinding. faced with the uncertainty and the complexity of the environment we are operating in, we need to take a broader perspective and make sure our decisions are robust under different plausible eventualities. at the same time, the bank of thailand constantly strives to expand our economic surveillance capability, by collecting up - to - date intelligence on economic and financial conditions through indirect and direct contacts with the market. the insights from direct contact, coupled with the information from surveys like our business sentiment survey sharpen the picture we get from the other available statistics. this is one reason why monetary policy cannot simply follow mechanistic and simplistic rules based solely on any single data. nonetheless, uncertainties can never be off the table. in this light, a prudent approach is to move in careful and measured steps. that kind of incremental action in what we perceive to be the right direction is likely to contribute more to economic stability than aggressive attempts to fine tune the economy. bis central bankers ’ speeches 3. inability to address supply - side impediments the third limitation of monetary policy i would like to emphasize today is its inability to address supply - side impediments. through interest rate adjustment, monetary policy can influence aggregate demand in the economy. but monetary policy cannot solve deeper structural problems or lift growth potential of the economy. that needs to come from real progresses that increase productivity and relax supply - side constraints. sure, demand stimulating can buy time by cushioning the economy from short - term economic shocks. but this may possibly delay necessary adjustments of the economy to longer - term challenges. for example, keeping interest rate too low for too long and keeping exchange rate undervalued, beside encouraging risk taking and storing up financial instability problems for the future, may also temper incentives for businesses to improve efficiencies, and may slow the reallocation of capital and labor to more productive uses. in the context of thailand, one of the most important structural issues facing the thai economy at the moment is that of the labor shortage. through our business contact and recent surveys, the labor shortage has scored one of the top concerns by both domestic and foreign businesses operating in thailand. underlying causes of labor shortage include the demographic change and education and skill mismatch. clearly, there is little monetary policy can do to