Due to prolonged recession in developed countries and the rise in interest rates, the Philippine government has embarked on a series of stabilization and structural programs to stem the alarming rate of the country’s indebtedness. This study presents the key macroeconomic policies adopted in recent years and these affect individual households. It also discusses the mechanisms by which monetary and fiscal adjustments affect the labor market, the goods market and the government expenditures including the provision of public goods. Areas for future research are highlighted.
