As policymakers of the National Government see it, our economy will grow by 7–8 percent in 2015 while the inflation target is at 2 to 4 percent.2 Other institutions and analysts project lower numbers for growth. But there is one thing they have in common – the view that the Philippines will continue to be comparatively buoyant.
An appropriate mixture of orthodox monetary policy focused on price stability and macro-prudential policy oriented to the prevention of bubble formation would make it possible to achieve price stability and financial stability at the same time with minimal costs to the economy.