Singapore : Selected Issues

Information about Asia and the Pacific Asia y el Pacífico

Journal Issue

Volume/Issue:: 2013/327
Series:: IMF Staff Country Reports
Author(s):: International Monetary Fund. Asia and Pacific Dept
Publisher:: INTERNATIONAL MONETARY FUND
Published Date:: November 2013
DOI:: http://dx.doi.org/10.5089/9781475520743.002
ISBN:: 9781475520743
ISSN:: 1934-7685
Page:: 11

This Selected Issues Paper discusses some observations on Singapore's monetary policy framework. Singapore's monetary policy uses the nominal effective exchange rate (NEER) as the instrument in a basket-band-crawl framework. The paper finds that under some conditions an exchange rate-based monetary policy may not be detrimental to external competitiveness. A key parameter is the weight of imports in the consumer basket or production function. Tightening monetary policy through a nominal appreciation helps to dampen imported cost pressures. In addition, nominal appreciation can reduce domestic sources of inflation by lowering demand for local factors of production.

Singapore - Selected Issues

Singapore: Selected Issues

Article

Singapore

Author(s):: International Monetary Fund. Asia and Pacific Dept
Published Date:: November 2013

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Singapore : Selected Issues

Singapore

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