Need Singapore Fear Floating? A DSGE-VAR Approach

• Main Authors: Chow, Hwee Kwan, McNelis, Paul D.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Asian Studies; Econometrics; Finance
• Online Access: https://ink.library.smu.edu.sg/soe_research/1250; https://ink.library.smu.edu.sg/context/soe_research/article/2249/viewcontent/NeedSingaporeFearFloating.pdf
• Institution: Singapore Management University

This paper uses a DSGE-VAR model to examine the managed exchange-rate system at work in Singapore and asks if the country has any reason to fear floating the exchange rate with a Taylor rule inflation-targeting mechanism that uses the short term interest rate instead of the exchange rate as the benc...