Philippines : Selected Issues

Author/Editor:

International Monetary Fund. Asia and Pacific Dept

Publication Date:

September 4, 2015

Electronic Access:

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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.

Series:

Country Report No. 15/247

Subject:

English

Publication Date:

September 4, 2015

ISBN/ISSN:

9781513586243/1934-7685

Stock No:

1PHLEA2015003

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

67

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