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Publication Detail
BSP WPS 2020-12: 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.

Bangko Sentral ng Pilipinas
Authors Keywords
Alarcon, Sarah Jane; Alhambra, Paul Reimon; Amodia, Rosemarie; Bautista, Dennis ; Philippines; monetary policy; inflation; quarterly projection model; semi-structural; forecasting; FPAS; transmission mechanism;
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Published in 2020 and available for Downloaded 7 times since July 08, 2021
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