Economics Tuition – Video by Economics Focus

This e-learning video developed by JC Economics Tutor Simon Ng of Economics Focus is for the chapter of Foreign Exchange, focusing on the application of foreign exchange rate policy to achieve economic stability. The question also demands students to conduct an evaluation of the foreign exchange (forex) policy in achieving the above tasks in relation to other policies.

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]

Analysis of The Question

For this question, the requirement of the question is to be able to understand that low inflation and unemployment are two main aims the Singapore government uses to attain sustainable economic growth, while explaining the policy of exchange rate management policy in its usefulness in achieving these aims.

Critically analyse the disadvantages of exchange rate system in achieving economics stability.

Source of Information

Part of knowledge needed for this question:

  • Explain what are price stability and low unemployment

  • Explain the exchange rate system in achieving low inflation

  • Explain, with aid of a diagram, the concept of sustainable growth

  • Explain the benefits of exchange rate policy in the context of Singapore

  • Explain the potential limitations of exchange rate policy in the context of Singapore