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? 
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
- Foreign Exchange
- Balance of Payment
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.
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