Financial, Exchange Rate, and Wage Policies in Singapore, 1979-86

Otani, Ichiro; Sassanpour, Cyrus

doi:10.2307/3867183

Cited by 15 publications

(9 citation statements)

References 6 publications

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“…where equations are set to explore how the rate of devaluation (revaluation) reacts to both the domestic and foreign rates o f inflation. Similar results were reached with different rationales by Artus (1976) and Otani and Sassanpour (1988).…”

Section: The Money Market and The Balance Of Paymentssupporting

confidence: 85%

Demand for International Reserves and Exchange Rate Policy in Taiwan, 1979–1990^*

Hsiao¹,

Lin²

1995

Asian Economic Journal

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Taiwan has experienced a huge trade surplus and a rapid growth in the money supply since the 1970s. This paper constructs and estimates a model that takes into account the demand for international reserves, price levels, and the joint determination of the exchange rate, the demand for money, and the balance of payments in Taiwan during the period 1979 to 1990. We focus our attention especially on the period from 1986 to 1990 when foreign reserves rapidly accumulated and the appreciation expectations prevailed. Our estimate of exchange rate reaction function accords with what is expected. The exchange rate appreciations had a favourable effect on the stabilization of price levels. In addition, the exchange rate and its expectations play important roles in the demand for money equation.

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Section: The Money Market and The Balance Of Paymentssupporting

confidence: 85%

Demand for International Reserves and Exchange Rate Policy in Taiwan, 1979–1990^*

Hsiao¹,

Lin²

1995

Asian Economic Journal

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“…Earlier studies are Otani and Sassanpour (1988), Disney and Ho (1990) and Tan (1996). Using quarterly data from 1979 to 1986, Otani and Sassanpour estimated a macroeconomic system representation comprising seven behavioral equations and three identities.…”

Section: Introductionmentioning

confidence: 99%

“…Fields (1984) conclusion was that following the wage correction from 1979 to 1982 that had been promulgated by the NWC, Singapore saw "a return to market wage determination". While Fields (1984Fields ( , 1994 essentially left untouched the important issue of timing, specifically in how to manage the swing from unemployment to full-employment for the fledgling economy that Singapore's was after independence, Otani and Sassanpour (1988) adopted an alternative perspective that contradicted Fields (1984Fields ( , 1994 narrative. By simulating the aggregate economy using estimates for their system mentioned above, Otani and Sassanpour's assessment suggested that if wage controls had been implemented from 1981 to 1986 instead of the wage correction that actually occurred, it could have resulted in significant benefits.…”

Section: Introductionmentioning

confidence: 99%

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The Relationship Between Employment and Earnings in Singapore: 1991–2012

Tan

2014

Singapore Econ. Rev.

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Since its formation in 1972 under the leadership of its founding chairman, Professor Lim Chong Yah, the NWC has been a major force in ensuring the stability of the labor market. A key recommendation which the NWC pushed for as a means of saving jobs in the recessions has been the reduction of the cost of labor to employers. The underlying assumption was that the reaction of demand to reduced labor costs would be large enough to justify such an approach. The main aim of this paper is to derive estimates of the elasticity of demand for labor using a suitable time-series econometric approach. The estimates imply that the elasticity of demand for labor in Singapore is less than but close to being unitary in magnitude.

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“…The exchange rate and wage movements naturally become the two interrelated key factors in maintaining macroeconomic stability. Specifically, the wage policy manipulated by a tripartite collective bargaining institution known as the National Wages Council (NWC) has actually acted as an important complement to the country's exchange-rate policy controlled by the Monetary Authority of Singapore (MAS) (Otani and Sassanpour, 1988;Wu, 1999).…”

Section: Introductionmentioning

confidence: 99%

The Interplay of Wage and Exchange Rate Policies in Singapore: A Case of Collective Bargaining in Macroeconomic Management

Goh

Lee³

2004

Contemporary Economic Policy

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This article analyzes an optimization model of the policy game between Singapore's National Wage Council and the Monetary Authority of Singapore and further simulates the model over policy rules (Nash game versus non‐Nash game), economic scenarios, and the game players' preference and bargaining power. The results indicate that the exchange rate appreciation and wage growth act as substitutes under the Nash rule of policy responses, whereas they act as complements under the non‐Nash rule. Under the Nash rule, the exchange rate appreciation tends to be procyclical and wage growth countercyclical; union workers' bargaining power relative to employers' strengthens the procyclical appreciation uniformly but reinforces the countercyclical wage growth only when the economy undergoes a downturn. Both the Nash and non‐Nash rules call for more moderate appreciation and more flexible wage adjustments than their actual movements. (JEL E64, E61, F41)

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Financial, Exchange Rate, and Wage Policies in Singapore, 1979-86

Cited by 15 publications

References 6 publications

Demand for International Reserves and Exchange Rate Policy in Taiwan, 1979–1990^*

Demand for International Reserves and Exchange Rate Policy in Taiwan, 1979–1990^*

The Relationship Between Employment and Earnings in Singapore: 1991–2012

The Interplay of Wage and Exchange Rate Policies in Singapore: A Case of Collective Bargaining in Macroeconomic Management

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Financial, Exchange Rate, and Wage Policies in Singapore, 1979-86

Cited by 15 publications

References 6 publications

Demand for International Reserves and Exchange Rate Policy in Taiwan, 1979–1990*

Demand for International Reserves and Exchange Rate Policy in Taiwan, 1979–1990*

The Relationship Between Employment and Earnings in Singapore: 1991–2012

The Interplay of Wage and Exchange Rate Policies in Singapore: A Case of Collective Bargaining in Macroeconomic Management

Contact Info

Product

Resources

About

Demand for International Reserves and Exchange Rate Policy in Taiwan, 1979–1990^*

Demand for International Reserves and Exchange Rate Policy in Taiwan, 1979–1990^*