Philippine monetary policy changes lead to stronger responses to economic shocks.
The article looks at how the Philippines' monetary policy has changed since they started using inflation targeting in 2002. By analyzing different types of economic shocks, the researchers found that the country now responds better to certain shocks, like changes in demand, and has more flexibility with exchange rates. However, they also noticed that the response to financial issues has weakened, which could be linked to periods of high capital inflows.