Assess the measures small and open economies such as Singapore should adopt to reduce inflation
by
parshangming (student)
Assess the measures small and open economies such as Singapore should adopt to reduce inflation
The achievement of price stability is one of the key macroeconomic aims of the Singapore government. Price stability is achieved when low and stable inflation rates are achieved in the economy. Governments that have maintained inflation rate at below 5% can be said to have achieved price stability. Price stability is important in Singapore’s economy as it is the basis for sustainable growth in maintaining export competitiveness and providing a positive business environment. There are several measures Singapore can take to reduce inflation: fiscal policy, exchange rate policy and supply policies, both short term and long term.