ABSTRACT

Policymakers and private analysts in Singapore closely monitor the growth performances of the major sectors in the economy. To accommodate this popular demand for sectoral forecasts and enrich the results of simulation exercises, we extend our model to cover production by the sectors. Once we decided to do this, the sectoral block of the ESU01 model becomes responsible for churning out the economy’s aggregate supply of goods and services, which interact with aggregate demand to determine inventories endogenously and thereby close the model (see Figure 1.1 and also Chapter 7).