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Time to relook monetary policy in Singapore?

As the nation moves towards productivity-led growth, it may need to reconsider the macro policy mix to deal with a much-altered environment.

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Downturns, being few and far between (eg 1985 and 1999), were effectively managed using ad hoc supply-side policies such as reducing employer contributions to the CPF, lowering corporate tax rates and other steps to reduce the cost of doing business.

SINGAPORE'S exchange rate-centred monetary policy was implemented in 1981 when Goh Keng Swee was the chairman of the Monetary Authority of Singapore (MAS). Prior to this, in the 1970s, MAS took a more eclectic approach to monetary policy, monitoring multiple indicators such as interest rates,...

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