As with temporary sales-tax reductions, making the period reasonably short could accelerate investment expenditures to the time when aggregate demand is weakest. A pro and a con are associated with focusing on investment instead of consumption. The advantageous feature is that investment represents capital deepening--the whole goal of keeping the long-run general government budget in balance is to encourage an investment-oriented economy.
This MOA will help the Philippine banking sector adapt and respond better and faster to increasingly dynamic and challenging developments in the financial markets. Congratulations are therefore in order to all those involved in the process that has led to this MOA signing today. Let us give everyone a well-deserved round of applause.