Dimension of Human Resource Management

Macroeconomics is the branch of economics that studies the behavior and performance of an economy in general. It focuses on the aggregate changes in the economy with the unemployment, growth rate, gross domestic product and inflation.

Macroeconomics measure all aggregate indicators and the microeconomic factors that influence the economy. Government and corporations use macroeconomic models to help in reform the economic policies and strategies.

Low inflation rate Policy in Singapore

The inflation rate in Singapore has been largely managed by the central bank(Monetary Authority of Singapore).The central bank mainly adopt exchange rates policy instead of the interest rate policy that are largely practiced by central banks around the world. The exchange rate is the best tool for a small, open economy like Singapore as we are highly dependent on importing resources for consumption. Hence, the exchange rate which had emerged as an effective anti-inflation tool for Singapore. Over the years the Central bank has adopted a ‘modest and gradual appreciation’ stance for Sing dollar. This has effectively kept domestic inflation at relatively low, range from 1.9% per annum in 1981 to 2010. As a result of the long record of low inflation, expectations of price stability in Singapore have become more entrenched over the past few years. The exchange rating system has also helped to modify the adverse effects of short-term volatility to the real economy, while at the same time ensuring that the exchange rate remains in line with economic conditions and fundamentals. The success of the system helps to the strengthens the economic fundamentals of Singapore. Which also include prudent fiscal policy, flexible product and factor markets, sound financial system

The Monetary Authority of Singapore also report that the Semi-Annual policy statement that would have slight reduce the rate of appreciation in Singapore dollar