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DP 1996-11: Inflation and Economic Growth in the Philippines

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.

Philippine Institute for Development Studies
Authors Keywords
Yap, Josef T.; economic recovery; inflation; economic growth;
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