The reliance on automatic stabilisers - basically unemployment expenditure and taxes - would in general be preferable to a more active fiscal policy, because they have a more immediate impact on aggregate demand. In addition, unlike most discretionary policies, they do not have a persistent effect on fiscal variables, since they are reversed as soon as economic conditions change.
We will continue to work toward creating a sound market infrastructure, enhancing transparency and market discipline mechanisms, promoting greater investor protection, and supporting the passage of key legislative measures. As supervisor of the banking system, the BSP is also deeply committed to ensure there is adequate consumer protection when it comes to banking and other related financial services.