Philippine Standard time

Policy Analysis Model for the Philippines

This paper aims to present the BSP’s Policy Analysis Model for the Philippines (PAMPh) along with its key features and properties. PAMPh is a New Keynesian semi-structural gap model for analyzing monetary transmission mechanism of key macroeconomic variables and generating their medium-term forecast path. The model captures the key transmission mechanisms of the Philippine economy and features endogenous monetary policy. Agents in the model are forward-looking and react to the expectations of future policy decisions. The model is suitable for monetary policy analysis, forecasting, and serves as guide in the BSP’s policy-making process. The paper likewise includes an analysis of the transmission mechanism using impulse responses.


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