Econs Tut

The policies directed at the capital account could include interest rate policy, action policy (related to Foreign Direct Investments) and complementary infrastructure and Other supply side policies such as employer CAP levels. To manipulate current account, the government by and large does not use protectionism except for domestic service sectors, such as banking, fiscal policy due to small multiplier and does not aggressively undervalue currency because of fears of imported inflation.
For the capital account, since we have elected to choose exchange rates and free capital movements as our two choices, it does not use interest rate and UAPITA controls. Singapore does not want to scare away Foreign Direct Investments by implementing controls. Singapore mainly relies on supply side policies as the government tends to be more far-sighted and focuses on returns on the long run. The Balance of Payments will be analyzed as such.
Even in crisis periods such as early 2009, Singapore does not react much with exchange rate changes but instead encouraging foreign and few domestic firms to remain in Singapore by offering lower wage (and subsidizing for the lowest wage) and better tax areas. The opinion is that sudden exchange rate changes are inflationary and destabilize. Therefore, the typical exchange rate policy has been one of the slow and steady appreciate of the Singapore dollar in line with gradual improvement in performance of the current account.

The underlying policy behind the improved current account performance and how the exchange rate strengthened Balance of Payments come from the following. If rusty, Singapore develops current account in areas of higher value added to AP into growing world of incomes and to avoid goods where prices are volatile, such as those primary products exported by many developing countries. Also, Singapore constantly aims to raise value added to stay ahead of other countries which are building their current account.
This involves increasing expenditure on human capital and strategic alliances with firms that can make use of such labor by offering supply side support. Critic: Employer’s CAP, Wage Flexibility, PR Protection, Physical infrastructure improvement, corporate tax regimes, manpower development There is not much to change because Singapore has one of the strongest current accounts in the world.

Get a plagiarism free copy of this essay from our experts
Econs Tut
For as low as $13/Page
Order Now
Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 15% with the discount code VACCINE