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Item Restricted Effects of budget deficit on interest rates(1991-03-19) Clemente, Luis; Fernandez, Paul; De Dios, EmmanuelItem Restricted An analysis of the time series behavior of Philippine treasury bill rates : alternative approaches to interest rate determination(1991-03-25) Pranada, Marfred J.; Nuevo, James Clinton Richard C.; Mendoza, NimfaItem Restricted Contribution of Philippine interest rates to financial savings : real movements and/or redistribution(1992-03-18) Aquino, Rosalyn M.; Elevado, Marie Joyce C.; Ravalo, JohnnyHigher growth rates have generally been associated with higher rates of domestic saving. Since the accumulation of savings has been regarded as a primary condition for economic growth it is but natural for economists to seek ways of stimulating savings. Prima facie, the natural way of increasing savings seems to be through an increase in the interest rate which represents the gain from saving. The rationale behind this being, ceteris paribus, an ordinary individual naturally prefers present consumption. In order to convince him to abstain from consuming and instead save, the level of disutility he experiences from not using up his resources now must be compensated in the form of higher rates of return, specifically, higher interest rates. However, as our study will later show, higher interest rates may not always lead to increased savings. Moreover, interest rates may not be an effective tool in encouraging an individual to increase his savings particularly in the form of financial assets.Item Restricted Effects of budget deficit financing on interest rates(1988-03) Beltran, Lynn Valdez; Dimayuga, Ma. Juana Lucena; Gochoco, SocorroItem Restricted The impact of interest rates on Philippine stock market(2001-03) Patalinghug, Jason Albert C.; Solon, Orville C.Empirical studies on the relationship between interest rates and Philippine stock market are rare. This study investigates the influence of interest rates on Philippine stock market. The impact of foreign interest rates on Philippine stock market is examined by regressing separately changes in U.S. discount rate, Federal Funds rate, U.S. prime rate, and LIBOR on changes in Philippine stock market index. The impact of domestic interest rates on Philippine stock market is analyzed by regressing individually the change in the savings deposit rate, Treasury bill rate, and time deposit rate on the change in Philippine stock market index during the 1994-2000 period. The estimates indicate that U.S. discount rate and Federal Funds rate do not affect Philippine stock market. But U.S. prime rate affects Philippine stock market. Among domestic interest rates, only savings deposit rates affect Philippine stock market. However, most of the evidence supports the hypothesis that the Philippine stock market is efficient in the semistrong form.Item Restricted Interest rates and other determinants of the level of deposits(1982-04-07) Nava, Ma. Carmen Vicente B.Item Restricted Empirical evidence on the impact of U.S. Expansionary monetary policy on the Philippine economy(2003-10) Abaquita, Marie Socorro Grace B.; Reside, RenatoThis paper measures the impact of US expansionary monetary policy, through innovations of the Federal funds rate on U.S. Gross Domestic Product and consumer price index. The study was further extended to how the Philippine Gross Domestic Product and the inflation rate respond to Federal funds rate innovations. Four variable unrestricted V ARs were estimated using quarterly time series data for the period 1983-2001. The findings of this paper are as follows. First, empirical results on the output effects of monetary policy shocks tend to support the hypothesis that expansionary monetary policy matter in the determination of output. Second, with respect to the price level, impulse responses show that an expansionary monetary policy shock matter in the determination of price changes as well. However, impulse response estimates of the price level encounter a price puzzle.Item Restricted The sensitivity of Philippine interest rates to the US federal funds rate(2006-10) Aquino, Ma. Felicia; Manalo, Mark Paul; Bautista, Maria Socorro GochocoThe sensitivity of Philippine interest rates to US interest rate hikes is the main focus of this paper. The US Federal funds rate, among others, is closely monitored by the Bangko Sentral ng Pilipinas and other central banks in the world. This is because the Federal funds rate indicates any tightness in the US banking sector that factors in US monetary policy stance. This paper investigates whether a long-run relationship exists between the different Philippine domestic interest rates and the Federal funds rate. Results from the cointegration tests suggest that there is a long-run relationship among the four domestic interest rates (ORP, ORRP, IBCLR and TBILL364) and the explanatory variables, the federal funds rate and the inflation differential. It also estimates the speed of adjustment for each domestic interest rate. Compared to Frankel's [2002] result, the results suggest that domestic interest rates adjust faster to changes in the US federal funds rate. The calculated half-life in this study is less than that calculated by Frankel and others. This leads us to the conclusion that domestic interest rates adjust more quickly to changes in the federal funds rate than to changes in the 3-month US Treasury bill rate.Item Restricted The liberalization of the Philippine banking sector: its effect on the interest rate spread and profitability of banks (1998-2008)(2009-01) Burgos, Bea Rosario Louise S.; Nario, Ma. Regina O.; Tecson, GwendolynThe liberalization of the Philippine banking sector was intended to improve financial intermediation by promoting competition and enhancing the efficiency of the domestic banking sector. We examine how the entry of foreign banks affects the interest rate spreads and profitability of domestic banks and we find support that it does not systematically reduce both. Interest rate spreads of domestic banks remain on the same level and their profitability continues to grow. Nevertheless, foreign competition, at some extent, drives domestic banks to improve their operating performance. We construe that the presumed effect of the liberalization was felt but not fully realized.Item Restricted Inflation, Philippine savings and interest rates, 1970-1984: relationships and implications(1986-03-17) Carotan, Ana Bella V.; EmpeƱo, Armina C.