싱가포르의 화폐수요함수와 화폐대체 = Demand for Money and Currency Substitution in Singapore

다국어 초록 (Multilingual Abstract)

This paper studies the existence of currency substitution in Singapore from the first quarter of 1991 to the second quarter of 2014. The money demand equation incorporates the expected rate of depreciation of the exchange rate in addition to real income and the interest rate. Using quarterly three-month forward exchange rate premium/discount as a proxy for the expected change in exchange rate, the expected rate of depreciation has no impact on the money demand indicating no currency substitution in Singapore. This implies that the central bank of Singapore can pursue an aggressive monetary policy in response to the adverse external shocks from abroad to the Singapore economy. This contrasts with some of the currency substitution phenomena found in the money demand function in many emerging countries.