partnership with industry Strengthened partnership
by initiating regular dialogue prior to our twice-yearly
Monetary Policy Statement.
Enhanced transparency of monetary policy decisions
and MAS economic analysis by publishing two Macroeconomic
Further strengthened research efforts by publishing
four staff papers, including a joint study with
Ministry of Manpower to estimate the effects of
higher education on wages.
Kept the industry abreast on inflation developments
by publishing the Inflation Monthly on the MAS website.
a riskier environment To assess the impact
of SARS on the economy, we created an analytical
framework by grouping the various sectors according
to the severity that they were affected. We also
assessed the effectiveness of the economic package
put in place to assist households and businesses.
To enhance our understanding of the effects of exchange
rate on the economy, we examined the relationship
between S$ exchange rate and macroeconomic volatility
in a staff paper.
Strengthened our forecasting capabilities by launching
a composite electronics leading index to predict
the turning points in the global electronics cycle
and to generate quantitative forecasts of domestic
In view of ongoing structural
changes in the economy, we will
implement initiatives to strengthen
the robustness of forecasting,
policy analysis and decisionmaking
capabilities. This includes
enhancing the MAS econometric
model to better reflect the impact
of demographic developments
on the long-term sustainable
growth path of the economy.
We will construct econometric
models to better understand the
monetary transmission mechanism
in the economy.
With a view to understand
long-term movements of the real
exchange rate in Singapore, we
will undertake research on its
In order to better appreciate
the inter-linkages and financial
flows between sectors and
economic units, we are constructing
a flow of funds model for the