Journal Article

Monetary policy in a small open economy: the case of Singapore

Abstract: John H. Wood studies Singapore, a small open economy dedicated to growth through both saving and the attraction of foreign investment. He finds that the monetary authority's supporting role is the provision of a stable monetary environment, particularly a stable domestic price level. Singapore's monetary authority has unusual freedom from domestic constraints in fulfilling this role because of the government's conservative fiscal policy, control of labor relations, and disinclination to support unprofitable enterprises. Singapore has controlled its inflation by adjusting to changing world conditions. The record indicates that low inflation has been maintained by means of a money growth rule.

Keywords: Monetary policy - Singapore; Singapore;

Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: Economic and Financial Policy Review

Publication Date: 1992

Issue: Q II

Pages: 25-41