The Philippine Central Bank's Monetary Policy Reaction Function from 1992 to 2003
AbstractThis paper attempts to provide an empirical determination of the Philippine central bank's (BSP) recent monetary policy stance, before and after its adoption of the inflation targeting framework, as revealed by its interest rate setting behavior. Employing Clarida, Gali, and Gertler's (1998, 2000) forward-looking model, it finds that the BSP has indeed been stabilizing inflation by and large through its key policy rate, though it appears to be accommodative with respect to the output gap. In addition, currency stability and expansionary money supply (M1) growth are other concerns of the BSP, though significantly so only in earlier periods.
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0405021.
Length: 26 pages
Date of creation: 19 May 2004
Date of revision:
Note: Type of Document - pdf; pages: 26. Research seminar (master's) paper
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monetary policy; inflation; interest rates; inflation targeting; macroeconomics; central bank; taylor rule; stabilization; Philippines; BSP; forward-looking;
Find related papers by JEL classification:
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-05-26 (All new papers)
- NEP-IFN-2004-05-26 (International Finance)
- NEP-MON-2004-05-26 (Monetary Economics)
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