Download or read book Exchange Rate Policy and Monetary Strategy Options in the Philippines written by Aerdt G. F. J. Houben and published by International Monetary Fund. This book was released on 1997-05-01 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Exchange Rate Movements in the Philippines written by Caesar Bucia Cororaton and published by . This book was released on 1997 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Policy in the Philippines During Periods of Financial Crisis and Changes in Exchange Rate Regime written by International Monetary Fund and published by International Monetary Fund. This book was released on 1989-12-07 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines some of the key issues in the conduct of Philippine monetary policy since 1984, including the various shocks to the economy and the monetary authorities’ choice of intermediate policy targets and instruments used to achieve those targets. Against this background, estimates of demand functions for various categories of monetary aggregates and tests of stability are reported. A monetary model of exchange market pressure is also estimated. The results suggest that even after the adoption of a floating exchange rate system, the authorities allowed changes in foreign reserves to continue to absorb most of the exchange market pressure.
Download or read book Real Wages and Real Exchange Rates in the Philippines 1956 78 written by Deepak Lal and published by . This book was released on 1983 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: The standard trade-theoretic Stolper-Samuelson-Rybczynski model is used in an attempt to explain movements of real wages in the Philippines. In view of the factor intensities in the Philippines, commodities are aggregated into two composite goods, traded and non-traded. The relative price, or real exchange rate, of these goods is shown to have been an important determinant, with changes in relative factor supplies of less importance in determining real wages. A conventional two-sector model is set out, which distinguishes between the short- and long-run effects in terms of the quasi-fixity of sector specific capital. A simple regression model is estimated and seems to provide a fairly good explanation of what has hitherto appeared to be a puzzling feature of post-war Philippines economic performance: high growth rates of output and employment accompanied by declining real wages, in turn being associated with a rising incidence of poverty, in at least two periods. The final section of the paper briefly outlines the sources of the movements in the real exchange rate, leading to these real wage movements, and draws some tentative conclusions for economic policy.
Download or read book Currency Crisis and Contagion Evidence from Exchange Rates and Sectoral Stock Indices of the Philippines and Thailand written by Jun Nagayasu and published by International Monetary Fund. This book was released on 2000-02 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes empirically the recent Asian financial crisis (1997-98) using the time-series data of exchange rates and stock indices of the Philippines and Thailand2 which were the first two countries confronted by massive movements in financial asset prices. Before the eruption of the currency crisis, Thailand had maintained its currency, the baht, linked to a basket of other currencies weighted heavily to the U.S. dollar. Meanwhile, Thailand's financial market came under continuous pressure in 1996, which continued with a series of speculative attacks beginning in early 1997. The Thai authorities attempted to defend the baht by increasing short-term interest rates and intervening heavily in the market, but despite their efforts, the currency was forced to float on July 2, 1997.3 Economic and financial turmoil in Thailand spread to neighboring countries including the Philippines, which is a relatively smaller economy with a solid financial market and economic fundamentals.4 A massive devaluation of the Philippines' peso occurred on July 11, 1997, followed by the Malaysian ringgit on July 14, the Indonesian rupiah on August 14, and the South Korean won on December 16, 1997. A high probability of financial market crisis in Thailand was to some extent anticipated by the IMF (International Monetary Fund, 1998a); however, the size and the duration of the crisis and contagion seemed beyond anyone's expectations.
Download or read book Exchange Rate Flexibility and Intervention Policy in the Philippines 1973 1981 written by Filologo Pante and published by . This book was released on 1983 with total page 114 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dynamic Effects of Exchange Rate Changes in the Philippines in 1970 1980 written by Susan S. Navarro and published by . This book was released on 1986 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Exchange Rate Movements and Their Impact on Trade and Investment in the APEC Region written by Mr.Tamim Bayoumi and published by International Monetary Fund. This book was released on 1996-12-04 with total page 74 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 18 members of the Asia-Pacific Economic Cooperation Council (APEC) encompass not only a wide geographic area but also broad differences in stages of economic development, including among them some of the fastest- growing economies in the world. Such rapid growth has been ficilitated by high levels of investment and trade, international linkages, and, in most APEC economies, macroeconomic policies that have sustained growth while not sparking excessive inflation. This study offers insights about how medium and long-term changes in real exchange rates have affected international (and intra-APEC) trade and investment in the region.
Download or read book International Migration Human Capital and Entrepreneurship written by Dean Yang and published by World Bank Publications. This book was released on 2005 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Millions of households in developing countries receive financial support from family members working overseas. How do the economic prospects of overseas migrants affect origin-household investments-in particular, in child human capital and household enterprises? Yang examines Philippine households' responses to overseas members' economic shocks. Overseas Filipinos work in dozens of foreign countries which experienced sudden (and heterogeneous) changes in exchange rates due to the 1997 Asian financial crisis. Appreciation of a migrant's currency against the Philippine peso leads to increases in household remittances received from overseas. The estimated elasticity of Philippine peso remittances with respect to the Philippine/foreign exchange rate is 0.60. In addition, these positive income shocks lead to enhanced human capital accumulation and entrepreneurship in origin households. Favorable migrant shocks lead to greater child schooling, reduced child labor, and increased educational expenditure in origin households. More favorable exchange rate shocks also raise hours worked in self-employment and lead to greater entry into relatively capital-intensive enterprises by migrants' origin households. "--World Bank web site.
Download or read book Analyzing the Influence of Foreign Exchange Rates and Economic Factors on Balance of Payment Fluctuations in the Philippines 2013 2022 written by Anthony Randolph Pablo and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The fluctuating foreign currency rate affects numerous economic problems, and the government is looking at it as one of the variables that cause the fluctuation of the Philippine balance of payments. Other factors include the Gross Domestic Product (GDP) growth rate, interest rates, and inflation. So, from 2013 to 2022, the researcher offered patterns and movements related to this element. The study analyzes its effects on the Philippine economy and its performance using the Preferred Reporting Item for Systematic Reviews and Meta-Analyses (PRISMA) technique. Exchange rate changes impact actual inflation rates and forecasts for future price changes. Its impact on international trade can also affect the nation's external sector. The result implied that a fluctuating currency causes inflation which lessens purchasing power, and there is a unidirectional connection from the balance of payment to the foreign exchange rate, inflation rate, interest rate, and GDP growth rate. Therefore, the government must encourage implementing interest rate management programs to improve the balance of payments and reduce inflation.
Download or read book Monetary Policy in the Philippines During Periods of Financial Crisis and Changes in Exchange Rate Regime written by David John Goldsbrough and published by . This book was released on 1989 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book What Explains Movements in the Peso Dollar Exchange Rate written by Mr.Yi Wu and published by International Monetary Fund. This book was released on 2013-07-18 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the factors affecting the weekly peso/dollar exchange rate movements between 1999 and 2013 using an error correction model. The model fits the historical data well. While copper price is the most important determinant of the peso exchange rate over the long run, other factors including interest rate differential, global financial distress, local pension funds’ derivative position, as well as the Federal Reserve’s quantitative easing also affect the peso in the short run. The Central Bank of Chile’s foreign exchange interventions in 2008 and 2011 had a small impact on the peso.
Download or read book An Examination of Philippine Monetary Policy Rules written by Carlos C. Bautista and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A small-scale open economy dynamic stochastic general equilibrium (DSGE) model is used to examine Philippine monetary policy. The model's parameters are estimated using Bayesian methods. Posterior odds tests are conducted to compare models with different specifications of the policy rule. These tests indicate that the monetary authorities do not respond systematically to exchange rate movements using the policy interest rate. The study shows that output growth movements can be explained largely by technology shocks, world output movements and terms-of-trade changes. Policy parameter estimates show a relatively strong reaction of the monetary authorities to inflation when compared to their response to output and the exchange rate. The study shows that policy rules that give more weight to output reflect responses of monetary authorities which are different from those represented by other rules. This is the case in models with the output growth rule. In these models, a terms-of-trade deterioration that leads to currency depreciation, inflation and output contraction induces the monetary authorities to lower its policy rate to mitigate its effects on output. By contrast in other models, the policy rate is raised upon impact of the terms-of-trade shock to control inflation.
Download or read book Evolution of Exchange Rate Behavior in the ASEAN 5 Countries written by Mr.Vladimir Klyuev and published by International Monetary Fund. This book was released on 2016-09-06 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines exchange rate behavior in the ASEAN-5 countries (Indonesia, Malaysia, the Philippines, Singapore, and Thailand). It finds that for the last 10 years there is no evidence that their central banks target particular exchange rate levels against any currency or basket. Thus, contrary to some assertions, they do not belong to a U.S. dollar club, a Japanese yen club, a Chinese renminbi club, or an ASEAN club. At the same time, they clearly try to smooth short-term volatility, particularly vis-à-vis the U.S. dollar. The degree of smoothing declined noticeably after the Asian Financial Crisis and less obviously after the Global Financial Crisis, with heterogeneity across countries. Short-term smoothing without level targeting does not interfere with monetary policies aimed at price stability.
Download or read book Exchange Rate Volatility and Trade Flows Some New Evidence written by International Monetary Fund and published by International Monetary Fund. This book was released on 2004-05-19 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: NULL
Download or read book International Migration Human Capital and Entrepreneurship written by and published by . This book was released on 2016 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Millions of households in developing countries receive financial support from family members working overseas. How do the economic prospects of overseas migrants affect origin-household investments-in particular, in child human capital and household enterprises? Yang examines Philippine households`responses to overseas members`economic shocks. Overseas Filipinos work in dozens of foreign countries which experienced sudden (and heterogeneous) changes in exchange rates due to the 1997 Asian financial crisis. Appreciation of a migrant`s currency against the Philippine peso leads to increases in household remittances received from overseas. The estimated elasticity of Philippine peso remittances with respect to the Philippine/foreign exchange rate is 0.60. In addition, these positive income shocks lead to enhanced human capital accumulation and entrepreneurship in origin households. Favorable migrant shocks lead to greater child schooling, reduced child labor, and increased educational expenditure in origin households. More favorable exchange rate shocks also raise hours worked in self-employment and lead to greater entry into relatively capital-intensive enterprises by migrants`origin households.
Download or read book Characterizing Exchange Rate Regimes in Post Crisis East Asia written by Mr.Taimur Baig and published by INTERNATIONAL MONETARY FUND. This book was released on 2001-10-01 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the behavior of the exchange rates of selected emerging market East Asian economies in the aftermath of the Asian crisis. The results suggest that movements in the Asia-5 currencies (Indonesia, Korea, Malaysia, Philippines, and Thailand) were significantly influenced by the U.S. dollar's day-to-day movements before the crisis, and have indeed continued to do so post-crisis. However, comparisons with a range of other currencies suggest that this is a fairly common trait across various regimes. Moreover, results from the post-crisis data do not support the view that the Asia-5 currencies presently have the same characteristics as they did before the crisis.
