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.
