Written by Wilfred Ling Wednesday, 27 April 2011
In my personal opinion, one of the main culprit for the surge in property prices in Singapore is due to the money supply released via the CPF ordinary account.
It is unclear to me whether the measurement of money supply namely the M1, M2 and M3 calculated by MAS takes into account of the money supply coming from the CPF. It is obvious that CPF has some influence over the money supply but the question is how much. MAS’ calculation of the money supply has not been always consistent. Take for example, POSB’s current account deposits were taken into consideration only when it was merged with DBS. How could this be since POSB was also a bank all along fulfilling the role of a banking institute? Just because it was a government owned does not mean it has no influence over ......