Preliminary Considerations of an Inflation Targeting Framework for the Philippines
IMF Working Papers, March 1, 1998
Source details
- Canonical URL
- Preliminary Considerations of an Inflation Targeting Framework for the Philippines
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Bibliographic details
- Authors: G. C. Lim, Guy Debelle
- Published: March 1, 1998
- Series: IMF Working Papers
Authors and publication
- By G. C. Lim, Guy Debelle
- March 1, 1998
- IMF Working Papers, Working Paper No. 1998/039
- Issue: 039
- Volume: 1998
- Pages: 30
- Stock No: WPIEA0391998
- ISBN: 9781451845808
- ISSN: 1018-5941
Core summary and motivation
- Monetary policy in the Philippines has had multiple objectives.
- Shifts in money demand and the money multiplier have made base money a less reliable anchor for monetary policy.
- Under present policies, a steady reduction in inflation is not assured.
- Changes to the monetary policy framework should be considered.
- The paper reviews the benefits and the constraints of an inflation targeting framework.
- The paper reviews necessary preconditions for successful implementation, both in terms of institutional infrastructure and the appropriate inflation target.
- The ability to forecast inflation reasonably well over policy-relevant time horizons is highlighted as a necessary precondition.
Major themes and analytical focus
- Evaluation of inflation targeting as an alternative monetary policy strategy given the limitations of base-money targeting in the Philippines.
- Assessment of institutional infrastructure requirements for implementing an inflation targeting framework.
- Consideration of the appropriate inflation target for the Philippines.
- Emphasis on the role of inflation forecasting ability over policy-relevant horizons.
- Discussion of constraints that may impede the benefits of inflation targeting in the Philippine context.
Subject classification and keywords
- 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
Italic: Preliminary Considerations of an Inflation Targeting Framework for the Philippines — IMF Working Papers 1998/039.
Content in this bundle
- Preliminary Considerations of an Inflation Targeting Framework for the Philippines - WP/98/39