The Monetary Authority of Singapore (MAS) operates a managed float regime in which the exchange rate of the S$ is allowed to fluctuate within a band. Exchange rate policy is used extensively by the MAS to manage Singapore’s macroeconomic performance. To what extent might the main macroeconomic problems faced by Singapore in recent years be solved by exchange rate policy?
Chapter: Aims of Government/Policies
Assess the macroeconomic objectives of the Singapore government, in which there are four aims, namely sustainable economic growth, price stability, full employment and external equilibrium. Find out whether the use of the exchange rate management system, particularly the managed float exchange rate, is effective in supporting the pursuit of the macroeconomic aims.
07 August 2018