Philippines: Preparations for Inflation Targeting

August 1, 2001

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Format: Chicago

Piyabha Kongsamut. Philippines: Preparations for Inflation Targeting, (USA: International Monetary Fund, 2001) accessed November 21, 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

The Philippines is planning to shift toward adoption of an inflation targeting framework in 2001. This paper reviews key policy issues in this context, describes various operational and technical preparations, and presents an empirical analysis of the factors driving inflation. Among the key policy requirements, while central bank independence appears assured, the exchange rate has been allowed to fluctuate largely freely, and the authorities are embarking on a medium-term plan for fiscal consolidation. Empirical results suggest that the effective exchange rate (rather than a bilateral rate) and wages are important long-run influences on inflation.

Subject: Consumer price indexes, Exchange rates, Foreign exchange, Inflation, Inflation targeting, Monetary policy, Nominal effective exchange rate, Prices

Keywords: Consumer price indexes, Exchange rate measure, Exchange rate movement, Exchange rates, Food price, Inflation, Inflation modeling, Inflation outlook, Inflation targeting, Inflation-targeting country, Monetary policy variable, Nominal effective exchange rate, Philippines, Targeted inflation rate., Transmission mechanism, WP

Publication Details

Pages:

20
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2001/099
Stock No:

WPIEA0992001
ISBN:

9781451852271
ISSN:

1018-5941

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