Monitoring the behavior of potential output helps policymakers implement appropriate policies in response to an economic crisis. In the short-run, estimates of the output gap will guide the timing of implementation and withdrawal of stimulus measures. In the medium- to long-term, these estimates...

Research and development (R&D) is an important resource for sustained economic growth. New knowledge created by a firm has spillover effects that improve the productivity of other firms and even other sectors. This is the heart of endogenous growth theory. In this framework, government policies...

One reason a developing country with a relatively open economy would be hesitant to devalue its currency is the effect of the change in the official exchange rate on the government budget items related to the external debt overhang. It is shown that in an economy characterized by mark-up pricing...

After the 1997 financial crisis, several East Asian economies, including the Philippines, adopted an inflation-targeting framework. The shift in the policy stance of the Bangko Sentral ng Pilipinas (BSP) came with the acknowledgement that a flexible exchange rate framework is better suited to...

Unfair trade practices (UTPs) demonstrate anticompetitive behavior which can be characterized into two general types: exclusionary abuse--an act of the firm (or a group of firms) to prevent entry of potential firms; or exploitative abuse--referring to actual abuse of market power. However, this...

Managing Capital Flows provides analyses designed to help policymakers develop a framework for managing capital flows that is consistent with prudent macroeconomic and financial sector stability.

Currency substitution implies the greater share of foreign currency in the asset holdings of domestic residents. Dollarization is the complete replacement of the local currency- in this case, the peso- by a foreign currency, most likely the US dollar. The paper finds that dollarization or...

This article is part of the seminar on “Science Technology Policies in the Philippines" jointly sponsored by PIDS and DOST on May 5, 1989. Several issues are discussed in this paper: the nature of various types of technology, the various ways to develop them, the present state of Philippine...

Based largely on the work of Funke and Hall, estimation results indicate non-causality between money and price level attributed to the interplay of factors such as unstable political and economic environment. P* vector has no significance on potential output since Q instead of Q* has been used.

This article deals with the concept of competitiveness. Competitiveness is technically a firm-level concept. However, it is oftentimes extended to the national level--the idea of a country's 'international competitiveness' with the following analogies: market share--export share of country;...