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Refer to qn paper for preamble 2b) Discuss whether exchange rate policy…

- - - - adopt a neutral stance
        
        rmb that singapore does not go to the exten of dep SGD but takes on a neutral stance
        
        explain the standard exp
    - - adopt a gradually appreciating stance
        
        increase px in terms of FC and a fall in px in terms of SGD
        
        directly decrease the px of raw materials
        
        curb imported inflation
        
        imported raw materials are cheaper in terms of sgd which mitigates increase in COP (explain in terms of 1. cost push inflation 2. imported inflation)
        
        assuming MLC holds, decrease NX and reduce dd pull inflation
    - - long impact lag
  - - - govt help to lower biz costs
        
        govt has given rental rebates and property tax rebates
        
        lower COP
        
        lower GPL as SRAS increase
    - - give PEEL for any one of the policies + diagram
        
        Long time lag