SINGAPORE’S MONETARY POLICY RESPONSE
TO THE FINANCIAL CRISIS
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
139
b1110
Challenges for the Singapore Economy
b1110_Chapter-08.qxd 2/21/2011 11:03 AM Page 139
Dostları ilə paylaş: |