Please use this identifier to cite or link to this item:
|Title:||Exchange rates and domestic prices in Singapore: An empirical study||Authors:||Toh, M.-H.||Issue Date:||1999||Citation:||Toh, M.-H. (1999). Exchange rates and domestic prices in Singapore: An empirical study. Singapore Economic Review 44 (1) : 99-115. ScholarBank@NUS Repository.||Abstract:||This paper evaluates the relationship between exchange rates and domestic prices in Singapore, and seeks to draw some policy implications for the achievement of price stability, should exchange rate volatility increase during the process of further capital market opening and foreign exchange liberalisation. The results indicate that the exchange rate has uni-directional causation to domestic prices, and depreciation of the domestic currency may result in domestic inflation. Exchange rate changes affect domestic prices through changes in the costs of production due to price changes in imported intermediate goods, rather than through price changes in imported consumer goods. This implies that depreciation may cause inflation. It is better to maintain and improve the competitiveness of exports through technical development and upgrading of product quality, rather than by engineering depreciation.||Source Title:||Singapore Economic Review||URI:||http://scholarbank.nus.edu.sg/handle/10635/44854||ISSN:||02175908|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Dec 30, 2019
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.