Publication Type
Book Chapter
Version
acceptedVersion
Publication Date
2011
Abstract
Prior to the crisis the consensus amongst central bankers in advanced economies was that price stability, in the form of low and stable price inflation, was a top priority for monetary policy and could best be achieved by targeting interest rates (usually overnight) or monetary aggregates, such as Narrow Money (M1) and Broad Money (M2). Liquidity in the banking system could be flexibly adjusted on a daily basis through open market operations to increase or decrease the monetary base which would be transmitted to the rest of the economy through financial intermediation. Financial markets would then adjust longer-term interest rates relevant to the real economy, such as mortgage rates and 12-month corporate bond rates, and could largely be left alone to price risk and allocate credit efficiently, since financial markets were generally considered to be rational and efficient.
Keywords
Monetary policy, Singapore, global financial crisis
Discipline
Asian Studies | Economic Policy | Finance
Research Areas
Macroeconomics
Publication
Challenges for the Singapore Economy in the Post-Crisis Era
Editor
Peter Wilson
First Page
139
Last Page
167
ISBN
9789814343930
Publisher
World Scientific
City or Country
Singapore
Citation
CHOW, Hwee Kwan and WILSON, Peter.
Monetary Policy in Singapore and the Global Financial Crisis. (2011). Challenges for the Singapore Economy in the Post-Crisis Era. 139-167.
Available at: https://ink.library.smu.edu.sg/soe_research/1352
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://worldcat.org/isbn/9789814343930
Included in
Asian Studies Commons, Economic Policy Commons, Finance Commons