Philippines Money Demand Stability Paves Way for Effective Monetary Policy
The article estimates the demand for money in the Philippines to help determine the best monetary policy targets. By using three different methods, the researchers found that the demand for money is stable over time. They also discovered that income has a high impact on money demand, while interest rates have a negative effect. This suggests that controlling money supply is a suitable strategy for the Philippines' monetary authorities. The results align with previous studies and are consistent across the different methods used.