IMF Working Papers

Preliminary Considerations of an Inflation Targeting Framework for the Philippines

By G. C. Lim, Guy Debelle

March 1, 1998

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G. C. Lim, and Guy Debelle. Preliminary Considerations of an Inflation Targeting Framework for the Philippines, (USA: International Monetary Fund, 1998) accessed November 6, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Banking, Economic forecasting, Exchange rates, Foreign exchange, Inflation, Inflation targeting, Monetary base, Monetary policy, Money, Prices

Keywords: Central bank charter, Central bank governor, Exchange rates, Inflation, Inflation development, Inflation expectation, Inflation feedback rule, Inflation objective, Inflation process, Inflation rate, Inflation targeting, Monetary base, Monetary policy decision, Monetary policy strategy, Nominal exchange rate, Output gap, Practice inflation targeting, Rate of inflation, WP

Publication Details

  • Pages:

    30

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1998/039

  • Stock No:

    WPIEA0391998

  • ISBN:

    9781451845808

  • ISSN:

    1018-5941

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