A stinging commentary in Forbes about Singapore?s march towards an Iceland-like
economic meltdown is making the rounds online. Here, academic Donald Low digs
into the article dismissing its main thesis but saying there are some valid
points that the...
More
A stinging commentary in Forbes about Singapore?s march towards an Iceland-like
economic meltdown is making the rounds online. Here, academic Donald Low digs
into the article dismissing its main thesis but saying there are some valid
points that the government should not ignore.
Read More
You have dismissed the Forbes piece in your Facebook post. Why so?
It?s far too sweeping and alarmist. If we look at the usual triggers of
financial crises, they are mostly non-existent in Singapore. We don?t have a
large current account deficit ? on the contrary, we have a huge current account
surplus. We don?t have a large fiscal deficit ? we run structural surpluses. And
we don?t have a highly leveraged or indebted household or corporate sector.
On the point about a housing bubble in Singapore fuelled by low interest rates,
the Forbes commentary is partially correct ? house prices have indeed risen
partly because of historically low interest rates. But to claim that we are on
the verge of financial
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