IMF Staff Country Reports

Philippines: Selected Issues

September 4, 2015

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Philippines: Selected Issues, (USA: International Monetary Fund, 2015) accessed September 19, 2024

Summary

This Selected Issues paper examines the interaction between real and financial cycles in the Philippines and their relationship to the global financial cycle. It finds that the surge in capital inflows between 2010 and mid-2013 can largely be explained by global financial factors such as global risk aversion, with exchange rate expectations and domestic fundamentals playing a secondary role. Moreover, local bond yields and retail bank rates seem to be driven by the same global factors and the U.S. term premiums. The paper suggests that the quantitative impact of VIX shocks on domestic demand via capital flows and asset repricing and of changes in the U.S. 10-year Treasury bond yields on bank credit and investment, are significant.

Subject: Capital markets, Credit booms, Expenditure, Financial markets, Money, Output gap, Production, Public investment and public-private partnerships (PPP), Public investment spending

Keywords: Capital markets, CR, Credit boom, Credit booms, Credit growth, Debt, East Asia, Global, Government's poverty target, Growth elasticity of poverty, IMF staff estimate, Investment efficiency, ISCR, Output gap, Poverty, Public investment and public-private partnerships (PPP), Public investment spending

Publication Details

  • Pages:

    67

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2015/247

  • Stock No:

    1PHLEA2015003

  • ISBN:

    9781513586243

  • ISSN:

    1934-7685