ECONOMIC DEVELOPMENTS
AND MONETARY POLICY
     
Content Page
 
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US: Vibrant Pace . Europe: Mixed
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Box 15 – Debunking the Deflation Myth in Singapore . International Financial Markets: Broad Recovery Amid Uncertainty
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Box 16 – Exchange Rate and Macroeconomic Volatility . Monetary Policy in an Increasingly Volatile Environment
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Recent Policy Research and Analysis Against the Backdrop of More Frequent Shocks . Box 17 – Creating an Electronics Leading Index
 
The World Economy: Global Upswing
 
In the first half of the year, the combination of the Iraqi conflict and the outbreak of Severe Acute Respiratory Syndrome or SARS impacted the global economy, especially the Asian countries. However, affirmative measures to bring the economies back to gear generally resulted in encouraging economic data towards the second half. The economic turnaround was led by the United States and Japan, the two largest economies in the world. China also expanded rapidly, helping to pull up the rest of Asia.