Browsing by Author "Perez, Celia M."
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Item Restricted Inflation: empirical tests of alternative models(1990-05) Perez, Celia M.; Lim, Joseph Y.The paper starts with the basic monetarist model of inflation, the Harberger equation, and then proceeds to explain how other models evolved. A total of six (6) equations were tested using 1971-1988 data from the national income accounts of the National Statistical Coordination Board. The results were consistent in showing that although money supply affects inflation, it takes some time to do so. Important supply side factors like import prices strongly affect changes in prices and output. A move away from monetarist specifications, therefore, seems appropriate for countries like the Philippines, where financial markets are still developing, and institutional, and even political factors are structural realities which must be addressed, in order effect higher output and higher productivity.