Template-Type: ReDIF-Article 1.0 Author-Name: Jose Encarnacion, Jr. Author-Workplace-Name: University of the Philippines School of Economics Title: A Reformulation of the Keynesian Model (Full Employment or Not) Abstract: This paper reformulates the Keynesian model so that the sometimes observed procyclical real wage can be explained. The paper defines an aggregate demand function based on portfolio balance with three assets (money, bond and equities) and an aggregate supply function derived from the supply behavior of a representative price-setting firm. The money wage is endogenous but the usual result is a short-period unemployment equilibrium. However, the case of full employment is also covered. The model also provides explanations of Phillips curve and stagflation phenomena. Journal: Philippine Review of Economics Pages: 123-139 Volume: 35 Issue: 2 Year: 1998 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/83/494 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:35:y:1998:i:2:p:123-139 Template-Type: ReDIF-Article 1.0 Author-Name: Muzafar Shah Habibullah Author-Workplace-Name: Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia Title: The Information Content of Alternative Monetary Aggregate: Simple-Sum Versus Divisia Money in Selected Asian Countries Abstract: The use of Divisia monetary aggregate has been proposed in the economic literature to take into account the different degrees of liquidity of the interest-bearing financial assets included in defining ‘money’. Despite the theoretical implication of the Divisia approach as an appropriate measurement of monetary services, the investigation has been mostly limited to developed countries. In this paper, the approach is applied to Asian monetary aggregates; the performance of the Divisia monetary aggregates together with its counterpart, the conventional Simple-sum aggregates, were then tested for their information content about national income using Granger-causality technique. Our results suggest that there is a role for Divisia monetary aggregate as intermediate indicator for policy purposes in the ‘deregulated’ Asian economies. Journal: Philippine Review of Economics Pages: 140-176 Volume: 35 Issue: 2 Year: 1998 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/84/512 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:35:y:1998:i:2:p:140-176 Template-Type: ReDIF-Article 1.0 Author-Name: Dipenrdra Sinha Author-Workplace-Name: Department of Economics, Macquarie University, Sydney, NSW Title: Saving and Economic Growth in Thailand Abstract: In this paper, we study the long run relationship between saving and economic growth in Thailand using time series data for 1950-96. We distinguish between private saving and total saving in our paper. We find that there is a long run relationship between per capita GDP and total saving but not between private saving and per capita GDP. Our causality tests show that there is no evidence of any causal relationship between the growth of per capita GDP and the growth of total saving or between the growth of per capita GDP and the growth of private saving. Journal: Philippine Review of Economics Pages: 177-186 Volume: 35 Issue: 2 Year: 1998 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/85/499 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:35:y:1998:i:2:p:177-186 Template-Type: ReDIF-Article 1.0 Author-Name: Angelo A. Unite Author-Workplace-Name: Yuchengco Center for East Asia, De La Salle University (DLSU) Author-Name: Michael J. Sullivan Author-Workplace-Name: University of Nevada, Las Vegas Title: Performance of Initial Public Offerings: Critique and Update Abstract: This paper investigams the short- and long-run performance of Philippine Initial Public Offerings (IPOs) from 1987 to 1997. We compare our results to those in papers published in Philippine journals and discuss the shortcomings of these previous studies. Based on our results, we find that past researchers may have inadequately studied market price reactions to IPOs, and that IPOs earn, on average, returns of 22.69 percent on the initial trading day. Over a three-year aftermarket period, returns total 48.33 percent or 5.44 percent less than a matched set of publicly-traded firms. This suggests that although investors in Philippine IPOs make significant returns on the initial trading clay, if they hold stock of IPOs for a long period, they earn slightly lower average returns than if they had held other comparable stocks. We think that our estimates are derived in a manner consistent with international financial market studies and that these results may be a more accurate depiction of actual performance of Philippine IPOs. Journal: Philippine Review of Economics Pages: 187-207 Volume: 35 Issue: 2 Year: 1998 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/86/496 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:35:y:1998:i:2:p:187-207 Template-Type: ReDIF-Article 1.0 Author-Name: Raul V. Fabella Author-Workplace-Name: University of the Philippines School of Economics Title: Bubbles, Monetary Management and the Asian Currency Crisis Abstract: We propose a life cycle of bubbles (from a quiescent stable state to a bubble to its collapse) where the role of monetary management is crucial. We claim that the policy of liberalizing short-term capital and private foreign borrowing (which was in effect a non-inflationary expansionary monetary policy with stable (pegged) exchange rates) combined to precipitate and deepen the Asean bubbles and create unsustainable short- and unhedged forex exposures. Journal: Philippine Review of Economics Pages: 208-221 Volume: 35 Issue: 2 Year: 1998 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/87/508 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:35:y:1998:i:2:p:208-221 Template-Type: ReDIF-Article 1.0 Author-Name: Florian A. Alburo Author-Workplace-Name: University of the Philippines School of Economics Title: Economic Turmoil in Asia: Prospects for FDI Flows Abstract: The economic and financial crisis that has plagued Asia since mid-1997 has left in its wake dramatic declines in output, large falls and volatile exchange rate changes, worsening poverty, and widespread social unrest owing to rising unemployment, among others. Yet it is important to remember that there are other effects that this crisis had left behind. These are the real economic dimensions of the countries that have made them achieve sustained growth rates in the past decades. These real factors are the outcomes ofand were influenced by structural changes in the region itself, which in turn have created the environment defining the pace and pattern of foreign direct investment into the affected countreis. These range from the domestic policy actions taken by governments to the transformation of the Japanese economy as a driving force for FDI. Much of this structural change in the environment for FDI in the region appears to be irreversible. It is in this context that the prospects for FDI in the region and into the affected economies seem to be positive. Journal: Philippine Review of Economics Pages: 222-247 Volume: 35 Issue: 2 Year: 1998 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/88/495 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:35:y:1998:i:2:p:222-247 Template-Type: ReDIF-Article 1.0 Author-Name: Cayetano W. Paderanga, Jr. Author-Workplace-Name: University of the Philippines School of Economics Title: Currency Crisis and Policy Response: The ASEAN and Philippine Case Abstract: The recent episode on ASEAN currency markets has given rise to the question as to whether this is based on fundamentals or whether this is due to region-wide reversal in market sentiment. How to respond to the immediate crisis and manage the macroeconomic environment afterwards is then discussed. Summary and tentative recommendations for policy are in the last section of the paper. Journal: Philippine Review of Economics Pages: 248-278 Volume: 35 Issue: 2 Year: 1998 Month: December File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/89/498 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:35:y:1998:i:2:p:248-278