Rising inflows of foreign direct investments as well as sustained overseas Filipino remittances and BPO receipts provide resilience against external shocks. Moreover, the ongoing global economic recovery bodes well for our merchandise exports. Meanwhile, the movement of the peso remains market-driven. This exchange rate flexibility will promote self-correction mechanisms and avoid dangerous build-up of unsustainable imbalances.
589–610; and Alberto Alesina (1987), “Macroeconomic Policy in a TwoParty System as a Repeated Game,” Quarterly Journal of Economics, vol. 102 (August), pp. 651–78. 12 See Kenneth Rogoff (1985), “The Optimal Degree of Commitment to an Intermediate Monetary Target,” Quarterly Journal of Economics, vol. 100 (November), pp.