Monetary policy regimes and macroeconomic outcomes
Subtitle: Hong Kong and Singapore
By: by Stefan Gerlach and Petra Gerlach-Kristen
Contributors: Gerlach-Kristen, Petra; Bank for International Settlements. Monetary and Economic Department
Series: BIS working papers -- no. 204; BIS working papers (Online) -- no. 204.
Publisher: Bank for International Settlements
Published: 2006
Place of publication: Basel, Switzerland
Language: eng
Format: [electronic resource] :
Description: This paper studies the relationship between macroeconomic behaviour and the monetary policy regime in Hong Kong and Singapore, using data for 1984-2004. We estimate an econometric model, comprising a Phillips curve, an IS curve and an equation for changes in the nominal effective exchange rate (NEER), which, in the case of Singapore, can be interpreted as a policy reaction function. The parameter estimates differ in two regards: the NEER responds to inflation in Singapore but not in Hong Kong, and the autoregressive parameter for the output gap in Singapore is smaller than in Hong Kong. Overall, the variability of inflation has been lower in Singapore, but the volatility of real economic activity has been similar in the two economies.
Notes: Title from PDF file (viewed on May 31, 2006).

"Monetary and Economic Department."

"April 2006."

Includes bibliographical references.

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