I hope that this short discussion convinces you that making effective monetary policy is no Sunday drive in the park. With both the informational limitations facing policymakers and the role of privatesector expectations in mind, I turn next to a discussion of two alternative frameworks for thinking about monetary policy.
Moreover, the BSP has implemented extraordinary liquidity measures to complement the National Government’s broad-based health and fiscal programs in mitigating the impact of COVID-19. These measures include the ₱300 billion repurchase agreement with the BTr as well as launching a package of measures to support lending to micro, small, and medium enterprises.