Meanwhile, global uncertainties owing to the COVID-19 outbreak heightened risk aversion in BSP supervised financial institutions (BSFIs). To encourage them to continue their intermediation activities, the Monetary Board approved the granting of temporary regulatory and rediscounting relief measures to these institutions.
All authorities had to do, it was believed, was pick their preferred point on a downward-sloping Phillips curve. But the bitter inflationary experiences of the 1970s and a belated recognition that the Phillips curve might be vertical in the longer run - if not slightly upward sloping eventually led to an increased focus on price stability as the goal for monetary policy.