Inflation and Economic Growth in the Philippines

Abstract

Analysis of pertinent data shows that Krugman’s warning about the serious repercussions of a number of disinflation methods is relevant for the Philippine case. While financial managers have correctly responded during the crisis years, policy responses during the recovery phases from 1986-1995 have been myopic. Analysis also indicates that prevention of real effective exchange rate given volatile capital flows requires interest targeting from the Central Bank._x000D_ _x000D_

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