This case is about ECONOMICS
PUBLICATION DATE: January 06, 2004
Exchange Rate Policy at the Monetary Authority of Singapore, Chinese Version Case Solution
The choices of the in-charge of the country’s monetary policy, in this case Monetary Authority of Singapore (MAS), are meant to support the country’s entire strategy for sustainable economic growth with price stability.
MAS has been successful in managing exchange rates through using a managed float system, which permits more flexibility than a fixed exchange rate but less volatility than floating exchange rates. Following the Asian financial crisis, Dr. Khor Hoe Ee and his colleagues must determine whether to continue to handle exchange rates through the managed float or whether alternative monetary policies would be more successful in supporting Singapore’s economic goals.
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