Forex controls in the 1950s
The 1950s were an era of foreign exchange and import controls for the Philippines. This lasted for a solid one decade during which the country undertook to rehabilitate from the war and move toward political and economic independence. We could have built the nation better in those formative years.
The weakening or depreciating peso
It is taking more pesos to exchange for one US dollar. This weakening or depreciation of the peso is a phenomenon that is not easily understood. (For one thing, not only do we have a changing peso value to the US dollar. The US dollar itself is changing its own value as a currency!)
Managing inflation, or rising prices
The Philippine Statistics Authority reports that prices in January compared to those of the same month last year, rose four percent. While this is a moderate inflation rate, new conditions are creating inflationary pressures. Monetary authorities will face these challenges as they try to stabilize prices in a time of sustained growth effort.
Inflationary tendency
A creeping rise in domestic prices has been happening since a year ago, indicative of modest inflationary pressures.
Peso depreciation: causes and implications
Last week, the peso breached 50 pesos per one US dollar. Until August, it was 46 pesos to the dollar on average. This means the peso has depreciated by as much as 8.7 percent since August. One thing is sure, the peso rate will fluctuate some more.
Philippine monetary history viewed from the Greek euro crisis perspective
The current Greek economic crisis within the euro zone can be instructive for us in understanding our own monetary history since American colonial times. This is now what I will attempt to do.
The risks of a rising peso
Recent data show that the United States economic recovery remains tentative. These lead to fresh speculation that the peso will start to appreciate. But a strong peso does not necessarily mean that the Philippine economy is weak, but that the US economy is weak. In fact, a strong peso is not necessarily good for most...
Currency wars?
One view that has become popular among commentators and pundits is that currency wars are now front row in the global landscape. This is hardly compelling.
Green shoots
The Philippine economy grew at 6.6% in Q4 2013 despite the ravages of Yolanda, and the overall growth for the year averaged a rapid 7% for 2013. While this is a reason for celebration, I wanted to look beyond "rapid" having in the past celebrated episodes of rapid growth which promptly collapsed.
Who’s afraid of a weak peso?
In recent days, the peso has dipped to a three-year low at P45 to a dollar. Should government authorities panic? I hope not. Overall, its effect on economic growth, employment, the government’s fiscal position, and the Bangko Sentral’s financial position is positive.
Deviant behavior: a century of Philippine industrialization
[with Jeffrey Williamson] While the Philippines conformed to the world-wide unconditional industrial convergence pattern for seven decades, it began to deviate from the pack in the 1980s, leaving the industrial catching up club in 1982, never to re-enter. What were the causes of this regime switch?
‘Hot money’ exit inevitable
It would be a mistake to assume that the equity markets and currency markets will be sailing smoothly from hereon. I see the present situation as more of a lull before the storm. I expect more volatility in the next few months. When the Fed starts to tighten the tapering process will be sustained for...
