IMF Staff Country Reports

Singapore: Selected Issues

July 29, 2016

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Singapore: Selected Issues, (USA: International Monetary Fund, 2016) accessed September 19, 2024

Summary

This Selected Issues paper develops a new calibrated model of the Singapore economy, the Singapore Global Policy MODel (SGPMOD), and uses it to conduct a variety of policy experiments focused on the conduct of monetary policy. The SGPMOD is used to illustrate the role of the monetary policy responses of Singapore’s monetary authority following a variety of domestic and external shocks. It is suggested that monetary policy can do little to prevent the trough in real GDP in late 2016, but it can definitely contribute to a speedier recovery. In the near term, there is general global turbulence in exchange rate markets, exacerbating the negative effects from Singapore’s transmission mechanism and its reliance on the uncovered interest parity condition.

Subject: Exchange rates, Financial services, Foreign exchange, Inflation, Output gap, Potential output, Prices, Production, Short term interest rates

Keywords: Asia and Pacific, Core inflation, CR, Exchange rate, Exchange rates, Global, Inflation, Interest rate, ISCR, MAS monetary policy response, Monetary policy, Output gap, Potential output, Reaction function, Short term interest rates, Singapore economy, Target NEER, Transmission mechanism

Publication Details

  • Pages:

    43

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2016/264

  • Stock No:

    1SGPEA2016002

  • ISBN:

    9781475521085

  • ISSN:

    1934-7685