Can a Financial Conditions Index Guide Monetary Policy? The Case of Singapore

• Main Author: CHOW, Hwee Kwan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Financial Conditions; Monetary Policy; Vector Autoregression; Forecast Performance; Asian Studies; Finance; International Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/1484; https://ink.library.smu.edu.sg/context/soe_research/article/2483/viewcontent/S12_223_20Chow.pdf
• Institution: Singapore Management University

In this study, we explore the issue of whether a financial conditions index can serve as a useful guide to monetary policy in the context of Singapore. To this end, we construct an index that comprises not only the usual monetary variables like interest rates, exchange rates and credit expansions bu...