Preliminary Considerations of an Inflation Targeting Framework for the Philippines

30 Pages Posted: 15 Feb 2006

See all articles by Guy Debelle

Guy Debelle

Reserve Bank of Australia

Cheng Hoon Lim

International Monetary Fund (IMF)

Date Written: March 1998

Abstract

Monetary policy in the Philippines has had multiple objectives. Moreover, shifts in money demand and the money multiplier have made base money a less reliable anchor for monetary policy. Hence, on present policies, a steady reduction in inflation is not assured, and changes to the monetary policy framework should be considered. This paper reviews the benefits as well as the constraints of an inflation targeting framework and the necessary preconditions--both in terms of the institutional infrastructure and the appropriate inflation target--for its successful implementation, including the ability to forecast inflation reasonably well over policy-relevant time horizons.

JEL Classification: E31, E42, E52

Suggested Citation

Debelle, Guy and Lim, Cheng Hoon, Preliminary Considerations of an Inflation Targeting Framework for the Philippines (March 1998). IMF Working Paper No. 98/39, Available at SSRN: https://ssrn.com/abstract=882285

Guy Debelle (Contact Author)

Reserve Bank of Australia ( email )

65, Martin Place
Sydney, NSW 2000
Australia

Cheng Hoon Lim

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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