A money supply model for the Philippines: 1970-1980
| dc.contributor.advisor | Tan, Edita A. | |
| dc.contributor.author | Tan, Elizabeth S. | |
| dc.date.accessioned | 2024-10-10T07:46:09Z | |
| dc.date.available | 2024-10-10T07:46:09Z | |
| dc.date.issued | 1983 | |
| dc.description.abstract | The study seeks to analyze money supply by looking into the conduct of monetary policy, the behavior of the nonbank public and the commercial banks, and the role of the external sector and the government. The theoretical framework used is the reserve-multiplier, which defines money supply as the product of the money multiplier and the monetary base. The multiplier captures first the behavior of the nonbank public as it chooses to hold currency versus demand deposits and demand savings and time deposits versus demand deposits. Second, the behavior of the banks as it hold excess reserves. Third, the reserve requirement policy for traditional deposits of the Central Bank. The domestic source of the monetary base is the main policy instrument and it is specified as a reaction-function to find out how monetary authorities react to the movements of certain variables in the economy. The regression results show that the nonbank public tends to demand less currency, but more savings and time deposits relative to demand deposits as its real income increases. The public will hold more savings and time deposits also as the short-term interest represented by the 91-day Treasury Bills rate increases. The estimated reaction-function shows that the monetary authorities have tended to create base money to sustain growth; however, it has tried to sterilize the foreign source of base money. Qualitative analysis for the period 1970-1980 shows that monetary policy has used the rediscount window to control money supply rather than the reserve requirement tool against traditional deposits more often. Although it has exercised the reserve requirement against margin deposits and deposit substitutes, it appears that it was prompted by policy objectives different from the control of money supply. | |
| dc.identifier.uri | https://selib.upd.edu.ph/etdir/handle/123456789/706 | |
| dc.language.iso | en | |
| dc.title | A money supply model for the Philippines: 1970-1980 | |
| dc.type | Thesis |