Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate to ensure price stability in the economy.  Further goals of a monetary policy are usually to contribute to economic growth and stability, as well as to lower unemployment.  Singapore has adopted an exchange rate-centered monetary policy framework since 1981, which has play a key role in the development of the country's economy.

In this podcast, Professor Chow Hwee Kwan from the SMU School of Economics, who researches in the areas of Monetary Economics, Macroeconomics and Econometrics, shares the reasons behind Singapore’s adoption of the exchange rate centered monetary policy framework, and some key challenges faced by policymakers in implementing Singapore’s monetary policy.