Monetary Policy in the Philippines During Periods of Financial Crisis and Changes in Exchange Rate Regime: Targets, Instruments, and the Stability of Money Demand

34 Pages Posted: 15 Feb 2006

See all articles by David Goldsbrough

David Goldsbrough

affiliation not provided to SSRN

Iqbal Zaidi

affiliation not provided to SSRN

Date Written: December 7, 1989

Abstract

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.

JEL Classification: 223, 224

Suggested Citation

Goldsbrough, David and Zaidi, Iqbal, Monetary Policy in the Philippines During Periods of Financial Crisis and Changes in Exchange Rate Regime: Targets, Instruments, and the Stability of Money Demand (December 7, 1989). IMF Working Paper No. 89/98, Available at SSRN: https://ssrn.com/abstract=885083

David Goldsbrough (Contact Author)

affiliation not provided to SSRN

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Iqbal Zaidi

affiliation not provided to SSRN

No Address Available