Inflation rate in the philippines research paper

Case study about inflation in the philippines 2018

The author pointed out that, in line with past theory and studies, the results of the paper implied that inflation impacted on growth by reducing investment, and by reducing the rate of productivity growth. The magnitudes of effects are also not that large; for example, an increase in the average inflation rate by10 percentage points per year is estimated to lower the growth rate of real per capita GDP on impact by 0. Mahmood, I. Monetary policy aims to influence the overall level of monetary demand in the economy so that it grows broadly in line with the economy's ability to produce goods and services. Moreover, the F-statistics probability, 0. It is also possible to De La Salle University 2 Assessing the Impact of Inflation Rates on Stock Prices in the Philippines forecast the ideal time to buy stocks as well as the providing long run or short run time series analysis ideal time to sell stocks. With the help of the Debt and the World Economy pp. Interest rates are increased to moderate demand and inflation and they are reduced to stimulate demand. However, in this Keynesian framework, it is not the case that inflation is itself a growth-enhancing force ; the point is rather that if rising aggregate demand is leading to increased growth , then some inflation pressures are likely to emerge as relatively benign byproduct. It is mainly focused to achieving a low and stable inflation, supportive of the economys development objective. Thus, the government introduced policies to help mitigate inflation rate.

When the inflation rate is above 8 percent, however, the estimated effect of inflation on growth rates is negative, significant, robust and extremely powerful. One of the major indicator of the development of an economy which theories that supports this claim is proposed by is why it is also one of the most monitored indicator Irving Fisher Developing Country cascading effects on price rise.

related literature about inflation in the philippines pdf

Society is a group of people involved in persistent interpersonal relationships, or a large social grouping sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Modigliani, F. Inflation has no significant effect on the economic growth of the Philippines on the 1st quarter of up to 4th quarter of However, Fama and Schwertstate directly related to appreciations of inflation, that the hypothesis that common stocks are a suggesting a strong positive relationship between hedge against the expected monthly inflation rate the two variables.

I argued before that perhaps the largest reason is a domestic one: imports are experiencing double-digit growth rates, even as exports have shrunk for 6 consecutive months. Does the inflation asset pricing.

In other words, price inflation is when prices get higher or it takes more money to buy the same item.

review of related literature about inflation in the philippines

The case study research design is also useful for testing whether a specific theory and model actually applies to phenomena in the real world.

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Philippine Inflation Rate Essay Example