A Second Look at Credit Crunch: The Philippine Case
This paper tries to verify empirically the claim that there has been a credit crunch in the Philippines since the onset of the Asian financial crisis in July 1997. The results of the analysis using both macro and micro level data do not support such claim. Instead, the results tend to show that the current slowdown in bank loans is merely a reflection of the economic downturn. The paper recommends that policymakers focus their attention on raising aggregate demand using both monetary and fiscal policies.
|Date of creation:||1999|
|Date of revision:|
|Contact details of provider:|| Postal: NEDA sa Makati Building, 106 Amorsolo St., Legaspi Village, Makati City,|
Web page: http://www.pids.gov.ph/
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- Ben S. Bernanke, 1993. "Credit in the macroeconomy," Quarterly Review, Federal Reserve Bank of New York, issue Spr, pages 50-70.
- Wei Ding & Domac, Ilker & Ferri, Giovanni, 1998. "Is there a credit crunch in East Asia?," Policy Research Working Paper Series 1959, The World Bank.
- Richard Cantor & John Wenninger, 1993. "Perspective on the credit slowdown," Quarterly Review, Federal Reserve Bank of New York, issue Spr, pages 3-36.
- Brunner, Karl & Meltzer, Allan H, 1988. "Money and Credit in the Monetary Transmission Process," American Economic Review, American Economic Association, vol. 78(2), pages 446-51, May.
- Ben S. Bernanke & Alan S. Blinder, 1988.
"Credit, Money, and Aggregate Demand,"
NBER Working Papers
2534, National Bureau of Economic Research, Inc.
- Lamberte, Mario B. & Orbeta, Aniceto Jr. C. & Cororaton, Caesar B. & Guerrero, Margarita F., 1999. "Impacts of the Southeast Asian Financial Crisis on the Philippine Manufacturing Sector," Discussion Papers DP 1999-09, Philippine Institute for Development Studies.
- Frederic S. Mishkin, 1996. "The Channels of Monetary Transmission: Lessons for Monetary Policy," NBER Working Papers 5464, National Bureau of Economic Research, Inc.
- Stephen G. Cecchetti, 1995.
"Distinguishing theories of the monetary transmission mechanism,"
Federal Reserve Bank of St. Louis, issue May, pages 83-97.
- Stephen G. Cecchetti, 1995. "Distinguishing theories of the monetary transmission mechanism," Review, Federal Reserve Bank of St. Louis, issue May, pages 83-97.
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