Exchange Rate Policy and Monetary Strategy Options in the Philippines: The Search for Stability and Sustainability
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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.
Series:
Policy Discussion Paper No. 1997/004
Subject:
Exchange rate policy Exchange rates Foreign exchange Inflation Inflation targeting Monetary base Monetary policy Money Prices
English
Publication Date:
May 1, 1997
ISBN/ISSN:
9781451973341/1564-5193
Stock No:
PPIEA0041997
Pages:
36
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