IDEAS home Printed from https://ideas.repec.org/a/phs/prejrn/v41y2004i1p45-55.html
   My bibliography  Save this article

Monetary, fiscal and exchange rate policies and Philippine output : an application of IS-MP-AS model

Author

Listed:
  • Yu Hsing

    () (College of Business and Technology, Southeastern Louisiana University, Hammond, Louisiana, USA)

Abstract

The Philippine labor market is highly regulated and labor market policies tend to conform to standards of highly developed markets. The policies adopted by the government are geared more toward protecting the employed rather than promoting the overall employment of the labor force. These policies caused the country to veer off the path of labor intensive development in industrial enterprises and strengthened a powerful labor bureaucracy in the government. Side effects of the regulations and the culture surrounding the disposition of labor management issues encouraged rent-seeking and other motivational distortions in the behavior of labor when employed. The welfare policies as developed have contributed to the distortion in labor skill formation and the tendency to provide an increase of emoluments without any link to productivity growth. The balance between welfare and employment creation needs to be continually brought to the forefront. In undertaking reforms, productivity change needs to be placed in the center stage of reforms. Finally, the labor sector would find it in its interest to deal positively with the challenges of globalization. This means recognizing that labor market policies need to adjust to global competition. Furthermore, this emphasizes the need to accept that economic liberalization requires encouraging the growth of investments from all sources—including foreign direct investments. Such a route will create jobs and improve welfare for the working man.

Suggested Citation

  • Yu Hsing, 2004. "Monetary, fiscal and exchange rate policies and Philippine output : an application of IS-MP-AS model," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 41(1), pages 45-55, June.
  • Handle: RePEc:phs:prejrn:v:41:y:2004:i:1:p:45-55
    as

    Download full text from publisher

    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/166/585
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kashiwabara, Chie, 2015. "Changes in source of profits and business strategies? : some evidence from the Philippines' universal banks in the 2000s," IDE Discussion Papers 520, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Kashiwabara, Chie, 2013. "The Central Bank and bank credits in the Philippines : a survey on effectiveness of monetary policy and its measures," IDE Discussion Papers 413, Institute of Developing Economies, Japan External Trade Organization(JETRO).

    More about this item

    Keywords

    monetary policy; government deficits and debt; currency depreciation; stock prices;

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phs:prejrn:v:41:y:2004:i:1:p:45-55. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reuben T. Campos). General contact details of provider: http://edirc.repec.org/data/seupdph.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.