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Policy Coordination Between Wages and Exchange Rates in Singapore

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Encyclopedia of Finance

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Abstract

Singapore’s unique experience in macroeconomic management involves the government’s engagement in a tripartite collective bargaining and its influence on the macroeconomic policy game in wages and exchange rates in response to inflation and output volatility. The period from the mid-1980s to mid-1990s features the policy game with a Nash equilibrium in the level of wages and exchange rates and a non-Nash equilibrium in wage growth and exchange rate appreciations. Based on the empirical evidence in this period, the models used in this study suggests that wage and exchange-rate policies are a pair of complements both at their levels (Nash equilibrium) and at their percentage changes (non-Nash equilibrium).

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Author information

Authors and Affiliations

  1. Salisbury University, Salisbury, MD, USA

    Ying Wu

Authors
  1. Ying Wu
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Correspondence to Ying Wu .

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Editors and Affiliations

  1. Dept. Finance, Rutgers University, Rockafeller Road 94, New Brunswick, 08854-8054, New Jersey, USA

    Cheng-Few Lee

  2. College of Business, San Francisco State University, Holloway Ave. 1600, San Fransisco, 94132, California, USA

    Alice C. Lee

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© 2013 Springer Science+Business Media New York

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Wu, Y. (2013). Policy Coordination Between Wages and Exchange Rates in Singapore. In: Lee, CF., Lee, A. (eds) Encyclopedia of Finance. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-5360-4_48

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  • DOI: https://doi.org/10.1007/978-1-4614-5360-4_48

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  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4614-5359-8

  • Online ISBN: 978-1-4614-5360-4

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