Singapore's Interest Rates Linked to Inflation, Unveiling Market Price Puzzle
The study looked at how interest rates and inflation are related in Singapore from 1976 to 2006. It found that while interest rates and inflation do go up together, they don't move exactly the same way. There is a positive connection between them, but not a perfect one. The study also found that changes in interest rates and inflation can affect each other over time, and that there is a Price Puzzle in the Singapore market.