Several studies have shown that unconventional measures have been relatively effective in emerging markets, too. Financial markets were stabilized without significant currency depreciation or capital outflows, despite massive expansionary monetary and fiscal policies, in some cases defying the taboo of buying government debt in the primary market. Such effective uses, however, might have been attributed to a common global shock.
Given the possibility of higher defaults and non-performing loans, there may be scope to offer more debt restructuring measures. We agree in principle with the goals of the proposed Philippine Economic Stimulus Act of 2020. The act seeks to ease the plight of workers, families and businesses who were adversely affected by the COVID-19 pandemic.