Economic Developments and Monetary Policy


MAS carried out a broad range of policy research studies over the past year to deepen our understanding of the Singapore economy. The following are some of the key studies:

A study of the natural rate of unemployment in Singapore found that unemployment
had crept up over the years, reflecting the ongoing economic restructuring.
An examination of the long-run equilibrium real exchange rate for Singapore showed no evidence of a misalignment of the currency from its equilibrium level (See Box 13).
An assessment of the trade dynamics in Asia, including identifying the cross-border production network that has emerged based on the complementary capabilities of the regional countries.
A staff paper analysing Singapore’s balance of payments from 1985 to 2003.

At the same time, MAS continued with our Visiting Scholar programme to enhance the rigour and depth of policy research and thinking at MAS. These visitors included Kenneth Wallis (University of Warwick), Delano Villanueva (Singapore Management University), Peter Wilson (National University of Singapore), Anthony Tay (Singapore Management University) and Andrew Feltenstein (International Monetary Fund).

During the year, MAS organised an inaugural Regional Seminar on Monetary Policy in Post-Crisis Asia with the Centre for Central Banking Studies of the Bank of England. The seminar attracted 24 participants from 12 regional central banks. This was an excellent opportunity for MAS to work together with a well-established institution to provide a forum where central bankers from across the region could exchange experiences and provide updates of new analytical techniques.
As part of our continuing Economics Education efforts, we delivered lectures and presentations to students and teachers on monetary policy issues. In addition, we launched an Inflation Calculator on the MAS website, allowing users to obtain inflation-adjusted prices of goods and services or wages (See Figure 2).