Singapore Tightens Monetary Policy to Fight Inflation

The video discusses the exchange rate policy and its long-term implications for the Singapore dollar. The Monetary Authority of Singapore is primarily concerned with core inflation, which has seen a significant increase in recent months. The policy exchange rate band is used to control this inflation, allowing the Singapore dollar to appreciate. Moving forward, the Singapore dollar is expected to perform well against other Asian currencies, although its performance against the US dollar will be influenced by Federal Reserve policies.

What is the main concern for the Monetary Authority of Singapore according to the video?

• Core inflation

• Unemployment rate

• Interest rates

• Trade balance

How does the Monetary Authority of Singapore control inflation?

• By setting a fixed exchange rate

• By adjusting interest rates

• Through fiscal policy

• Using the policy exchange rate band

What does tightening the exchange rate band imply for the Singapore dollar?

• It will depreciate

• It will remain stable

• It will appreciate

• It will fluctuate more

Against which currency is the Singapore dollar expected to perform well?

• Japanese Yen

• US Dollar

• British Pound

• Euro

What external factor is crucial for the Singapore dollar's performance against the US dollar?

• Bank of Japan policy

• People's Bank of China policy

• Federal Reserve policy

• European Central Bank policy