Macro-Economics Case Analysis: Singapore - a unique economy

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Singapore - An economy unique due to the unique constraints and nature. The analysis of a small nation open economy from a macro economics perspective. This paper is intended as an academic work only and any discrepancies or incorrect hypotheses may not be held against the author.

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Macro-Economics Case Analysis: Singapore - a unique economy

  1. 1. MACRO ECONOMICS CASE ANALYSISDECISIONS FACING THE MONETARY AUTHORITY OF SINGAPOREASIAN INSTITUTE OF MANAGEMENT SECTION–A | LEARNING TEAM–1Cohort-7 | MBA 2012 • DARSHAK JAGADESH • DIANNE SISON • MADHURANATH R • SHAKUL DUBE • TANMOY DEY • VINCENT BERMEJO
  2. 2. | QUESTION | In a changing Asian economic scenario, how can Singapore sustain high growth measures despite its inherent unique challenges and limitations?
  3. 3. | IMPACT | UNIQUE LIMITATIONS OF SINGAPORE ECONOMY C – CONSUMPTION CAP Domestic consumption in Singapore does not provide sufficient leverage in manipulating GDP for a long term I – INVESTMENT THRESHOLD Being a developed economy, Singapore has limited handle on boosting GDP through domestic investments G – GOVT. SPENDING ON WHAT? A small country like Singapore, which is already developed, has limited need for government spending X – EX-IM MIX Financial services are the chief component of Ex-Im mix which greatly enhances the impact of only specific fiscal or monetary policies on Singapore’s GDP growth rate
  4. 4. | RESPONSE | RECOMMENDATIONS FOR SINGAPORE ECONOMY / MAS Continue the exchange rate control policy Use alternate fiscal/monetary policy tools in line with the economic changes Explore innovative fiscal and monetary policy tools like GAP and tax holidays Aid in holistic growth of Asia as a region to sustain Singapore’s own economic growth
  5. 5. THANK YOU

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