Singapore responded to the global crisis with both monetary and fiscal policies. In October 2008 the MAS adopted a zero percent appreciation of the Singapore dollar Nominal Effective Exchange Rate (NEER) policy band. In the latest Budget, a $20.5 billion Resilience Package was unveiled. This expansionary Budget, which featured the Jobs Credit Scheme, aimed to save jobs, enhance the cash flow and competitiveness of firms, support families, and strengthen the economy's long-term capabilities.

Use IS-LM model to illustrate and discuss the impact of Singapore's policy responses to the recession.