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Singapore Avoids Stimulus as Minister Acts on Bubble Risk

Singapore Finance Minister Tharman Shanmugaratnam said there’s no need for monetary stimulus in a country with full employment, leaving policy makers reliant on unorthodox tools to prevent asset bubbles.

“We don’t have an output gap, and evidence of that is in an extremely tight labor market,” Shanmugaratnam, 56, said in a Bloomberg Television interview with Haslinda Amin yesterday. “In that context basically, you can’t have an easy monetary policy, which in our case is an exchange-rate policy.”