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Using macroeconomic policies to achieve economic stability in a small and open economy

To what extent is the policy of gradual appreciation of the Singapore Dollar (SGD) always a desirable approach to maintain economic stability in Singapore? [25]

Question Requirements

What you need to know to attempt this essay question?

First, you must be clear on the four aims of government, namely low and stable inflation rate, low unemployment, sustainable economic growth, and external equilibrium. Then, understand how exchange rate management policy, as a demand-side policy, can achieve the aim of economic stability, which refers to low inflation and unemployment rate. Finally, analyse the effectiveness of the stated policy in the context of Singapore, as a small and open economy.


  • International Trade
  • Globalization
  • Foreign Exchange
  • Balance of Payment

Knowledge Application

How to apply the knowledge to your exam preparation?

After watching the video, prepare an essay outline based on the given structure as stated in the video content. Once done, you can start writing a full economics essay. Please ensure that you complete your essay in 45 minutes, so as to improve your time management and writing skills.

Simon Ng

Founder, JC Economics & General Paper Tutor at Economics Focus
JC Economics Tutor Simon Ng of Economics Focus has been teaching A Level Economics and A Level General Paper since 2003. Simon set up Economics Focus to assist students in their pursuit of academic excellence at the examination by providing economics tuition for H1 and H2 students. JC1 and JC2 students are inspired by Simon's clear teaching methods that enabled them to comprehend economics terms and concepts. Simon developed the Rational Thinking methodology to aid students to excel in their JC economics essays and CSQs.