Indeed, this is a revolutionary solution for low value payments which has dramatically lowered transaction costs for both the bank and the client, increased the productivity of account officers, decreased cash-on-hand risk, and increased access to financial services. Through all these innovations, the regulatory focus of the Bangko Sentral is to ensure the underlying soundness of banks with appropriate risk management measures.
Under the ‘rational expectations hypothesis’, as there are no deviations between ‘actual’, and ‘expected’ inflation, both in the short-run and long-run, Phillips curves are treated as being vertical with no trade-off between inflation and unemployment. 13. Another policy related question is the shape of the short-run Phillips curve itself.