Title

Managing Capital Flows: The Case of Singapore

Publication Type

Book Chapter

Publication Date

2010

Abstract

The resurgence of private capital inflows into Asia in recent years has raised the question of whether the region is susceptible to yet another financial crisis. While a sudden large-scale reversal of capital flows is not likely to result in a liquidity crunch or balance of payments crisis, the attendant sharp corrections in asset prices will have an adverse impact on the economy particularly through indirect channels. We present, in this study, Singapore’s experience in managing the risks posed by capital flows as well as the retention of control over exchange rates and monetary conditions. It is the overall package of policies—including strong economic fundamentals and a robust financial system, prudent policy management on both the fiscal and monetary side, and credible exchange rate policy aligned with underlying fundamentals—and having the latitude to react promptly and on a sufficiently large scale to economic and financial developments that serve to increase Singapore’s resilience towards disruptive swings in capital flows.

Discipline

Asian Studies | Econometrics | Finance

Research Areas

Macroeconomics

Publication

Managing Capital Flows: The Search for a Framework

ISSN

978-1848447875

ISBN

9781848447875

Publisher

Edward Elga

City or Country

Cheltenham ; Northampton, MA

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://worldcat.org/isbn/978-1848447875

Comments

M. Kawai, M. Lamberte (eds.), UK: Edward Elgar

This document is currently not available here.

Share

COinS