Fiscal Policy, Public Debt Management and Government Bond Markets: The Case for the Philippines

Abstract

The fiscal health of the Philippines has improved significantly over the past decade. Notwithstanding the dividends from reforms, challenges remain for the Philippines on the fiscal side. Policy coordination, primarily through the Development Budget Coordinating Committee, has helped to reduce the need for policy sterilisation. However, some concerns have been raised by the Bangko Sentral ng Pilipinas (BSP) about the reduced issuance of government securities as well as possible interest rate repression. Meanwhile, sufficient liquidity in the domestic economy has ensured that the crowding out of private offerings is not an immediate concern. Further reforms on public debt management are needed to promote efficiency, further develop the capital market and enhance overall financial stability.

Full publication: Fiscal Policy, Public Debt and Monetary Policy in Emerging Market Economies

Keywords: Fiscal policy, public debt management, Philippines

JEL Classification: E630, H063