Exchange Rate Policy at the Monetary Authority of Singapore
Posted: 26 Jul 2006
Date Written: July 28, 2006
SUBJECT AREAS: Currency, Foreign exchange rates, Inflation, Macroeconomics, Monetary policy, Regulatory agencies
CASE SETTINGS: Singapore; Government & regulatory; 10,000 employees; 2002
The Monetary Authority of Singapore (MAS) is responsible for the country's monetary policy, and its decisions are intended to support the country's overall strategy for sustainable economic growth with price stability. MAS has been very successful in managing exchange rates using a managed float system, which allows more flexibility than a fixed exchange rate but less volatility than freely floating exchange rates. Following the Asian financial crisis, Dr. Khor Hoe Ee and his colleagues must decide whether to continue to manage exchange rates through the managed float or whether alternative monetary policies would be more effective in supporting Singapore's economic goals.
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