Can a kind soul educate me on the difference in monetary policies between say, the US and Singapore? So far this is what i understand ...
The US employs a interest rate policy that rises or falls in reaction to the market. Basically, to encourage or quell consumption.
Singapore however, employs an exchange rate policy by buying or selling currencies to strengthen (weaken) our dollar to decrease (increase) exports. But wouldnt this require a very strong reserve base?
Which one is better?
Why can't SG employ the same policy as the US ?