Exchange Rate Policy and Monetary Strategy Options in the Philippines : The Search for Stability and Sustainability /

This paper evaluates the Philippines' experience with different exchange regimes since 1970. It argues that the shift to a flexible regime was crucial to restoring external viability and generating an export-led economic take-off, but that mixed performance in meeting money targets and asymmetr...

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Bibliographic Details
Main Author: Houben, Aerdt
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1997.
Series:IMF Policy Discussion Papers; Policy Discussion Paper ; No. 1997/004
Online Access:Full text available on IMF
Description
Summary:This paper evaluates the Philippines' experience with different exchange regimes since 1970. It argues that the shift to a flexible regime was crucial to restoring external viability and generating an export-led economic take-off, but that mixed performance in meeting money targets and asymmetric policy reactions to exchange rate pressures have resulted in an uneven inflation performance. Since adoption of a firm nominal anchor for monetary policy would contribute to a more effective control of inflation and thereby to better prospects for sustained growth, the merits of three monetary strategy options are reviewed: stricter adherence to a money supply rule, adoption of an exchange rate peg, and a switch to direct inflation targeting.
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Physical Description:1 online resource (36 pages)
Format:Mode of access: Internet
ISSN:1934-7456
Access:Electronic access restricted to authorized BRAC University faculty, staff and students