New Monetary Indexes for Singapore Could Revolutionize Economic Policy
The article explores how different ways of measuring money can affect economic predictions in Singapore. By using a new method called Divisia monetary aggregates, researchers found that these measures behave differently from traditional methods, especially before the year 2000 when interest rates were high. They also discovered that including credit card transactions in the analysis can provide more accurate insights into the economy. This research aims to improve central bank policies in Singapore by offering better ways to understand and predict economic activity.