philippine public administration

1. WORLD CITI COLLEGES MPA 207 – Advanced Economics and Public Policy Analysis
Macroeconomic Analysis for
Policy-Makers
MPA 207 – Advanced Economics and Public Policy Analysis
WORLD CITI COLLEGES
Presentation by: Ronald Allan Denoso
Nathaniel L. Reyes

2. WORLD CITI COLLEGES
CHAPTER LEARNING
OBJECTIVES
Economic growth and development
in the Philippines
 Fiscal and monetary policies
for stabilization
 Exchange rate policies and
international trade
considerations
Our presentation will cover the following:
MPA 207 – Advanced Economics and Public Policy Analysis

3. WORLD CITI COLLEGES MPA 207 – Advanced Economics and Public Policy Analysis
Monetary policy involves actions by central banks to manage
the money supply and interest rates, aiming to achieve
macroeconomic stability. Monetary policy tools include setting
policy interest rates, open market operations, and reserve
requirements.
In the Philippines, the Bangko Sentral ng Pilipinas (BSP) is
responsible for implementing monetary policies aimed at
stabilization.

4. WORLD CITI COLLEGES MPA 207 – Advanced Economics and Public Policy Analysis
Monetary policies for stabilization
Central banks adjust the interest
rate, influencing borrowing
costs to control inflation and
stabilize the economy.
Central banks can change
the reserve requirements
to control the money
supply and stabilize the
economy
Central banks buy and sell
government securities to
control the money supply.
This involves a central bank
purchasing large quantities of
government bonds or other
securities to increase the money
supply, lower interest rates, and
stimulate the economy
Interest Rate Modulation
Open Market Operations
Reserve
Requirements
Quantitative Easing

5. WORLD CITI COLLEGES MPA 207 – Advanced Economics and Public Policy Analysis
Monetary policies for stabilization
Central banks adjust the interest
rate, influencing borrowing
costs to control inflation and
stabilize the economy.
• Encouraging Economic Activity
Interest Rate Modulation
• Inflation Control
• Increased Liquidity
• Exchange Rate Implications
1. Cutting Rates to Stimulate Economy
How they Influence the Economy
2. Raising Rates to Slow Economy

6. WORLD CITI COLLEGES MPA 207 – Advanced Economics and Public Policy Analysis
Monetary policies for stabilization
Central banks buy and sell
government securities to
control the money supply.
Open Market Operations
money supply
money supply

7. WORLD CITI COLLEGES MPA 207 – Advanced Economics and Public Policy Analysis
Monetary policies for stabilization
Reserve Requirements
Central banks can change
the reserve requirements
to control the money
supply and stabilize the
economy
Impact in the Economy
• Increasing Reserve Requirements
• Decreasing Reserve Requirements

8. WORLD CITI COLLEGES MPA 207 – Advanced Economics and Public Policy Analysis
Monetary policies for stabilization
This involves a central bank
purchasing large quantities of
government bonds or other
securities to increase the money
supply, lower interest rates, and
stimulate the economy
Quantitative Easing
How Quantitative Easing Works
1. Purchasing Securities
2. Lowering Interest Rates
3. Encouraging Economic Activity
4. Easing Credit Conditions

9. WORLD CITI COLLEGES MPA 207 – Advanced Economics and Public Policy Analysis
Exchange rate policies and international
trade
Exchange rate policies and international trade considerations
are two closely interconnected aspects of economic policy.
Exchange rates influence relative prices and capital flows, they
are a significant factor determining international trade and
investments. Various exchange rate arrangements or policies
determine the reaction of a country's central bank to
fluctuations in exchange rates.

10. WORLD CITI COLLEGES MPA 207 – Advanced Economics and Public Policy Analysis
In this system, the value of a
currency is determined by
market forces, i.e., supply
and demand.
Floating Exchange Rate
Under this system, the value
of a currency is pegged to
another currency, a basket of
currencies, or a commodity
like gold.
Fixed Exchange Rate
This arrangement represents
a mix of both floating and
fixed exchange rate systems.
Managed Float
(or Dirty Float):

11. WORLD CITI COLLEGES MPA 207 – Advanced Economics and Public Policy Analysis
international trade
considerations
Competitiveness Terms of Trade Foreign Investment

12. WORLD CITI COLLEGES MPA 207 – Advanced Economics and Public Policy Analysis
conclusion
In conclusion, monetary policies play a vital role in
macroeconomic stabilization, steering economies towards
growth and stability during different economic cycles.
Likewise, exchange rate policies and international trade
considerations are essential aspects for governments and
central banks as they influence economic stability,
competitiveness in global markets, and the overall growth
potential of an economy.

13. WORLD CITI COLLEGES MPA 206 – Advanced Human Resource Management
1. Price Stability - Bangko Sentral ng Pilipinas
2. Benjamin E Diokno: Bangko Sentral ng Pilipinas' monetary policies amid ...
3. DEPARTMENT OF FINANCE
4. Dynamics of monetary policy and fiscal policy during the pandemic: the ...
5. Philippines: Toward Sustainable and Rapid Growth: Recent ... – IMF
6. Philippines: Financial System Stability Assessment – IMF
7. https://www.investopedia.com/ask/answers/12/influence-interest-rates-economic-growth.asp
8. https://corporatefinanceinstitute.com/resources/knowledge/economics/monetary-policy/
9. https://www.stlouisfed.org/on-the-economy/2014/october/how-quantitative-easing-transmits-to-the-aggregate-
economy