Do capital controls affect the response of investment to saving? evidence from the Pacific Basin
This paper examines the effect of capital controls on the response of investment to savings in Pacific Basin countries. A robust finding is that the size of the savings coefficient tends to be smaller (larger) in countries with relatively higher (lower) capital controls. Additionally, relaxation in capital controls for the most part had no discernible impact on the savings- investment relationship in individual country time-series regressions. At least a partial resolution to these puzzles is found in the government policy response: Countries with a relatively high saving-investment ...
External shocks and adjustment in four Asian economics--1978-87
Currency speculation and the optimum control of bank lending in Singapore dollar: a case of partial liberalization
The Monetary Authority of Singapore (MAS) has a long-standing policy of controlling bank lending in Singapore dollars to nonresidents and to residents who use the funds outside Singapore. While the control may prevent the internationalization of the Singapore dollar and contain exchange rate volatility, it can hinder the deepening and widening of the financial markets in Singapore. ; This paper suggests three policy options that would allow traders and investors to borrow Singapore dollars without any restrictions, while making it costly for speculators since their activities can cause ...
Growth accounting with misallocation: Or, doing less with more in Singapore
We derive aggregate growth-accounting implications for a two-sector economy with heterogeneous capital subsidies and monopoly power. In this economy, measures of total factor productivity (TFP) growth in terms of quantities (the primal) and real factor prices (the dual) can diverge from each other as well as from true technology growth. These distortions potentially give rise to dynamic reallocation effects that imply that change in technology needs to be measured from the bottom up rather than the top down. We show an example, for Singapore, of how incomplete data can be used to obtain ...
Monetary policy in a small open economy: the case of Singapore
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 ...
Exchange rates and monetary policy in Singapore and Hong Kong
On the road to Singapore
Econometric modeling in Singapore