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 ?