Felipe M Medalla: Banking on solid ground - the role of banks in postpandemic recovery Speech by Mr Felipe M Medalla, Governor of Bangko Sentral ng Pilipinas (BSP, the central bank of the Philippines), at the Bankers' Association of the Philippines (BAP) 2nd CEO Forum, Manila, 24 October 2022.
Given that the unprecedented global bubble has burst, it cannot be expected that demand will be created to meet the supplying capacity of the same products in the past. In that context, the oft-discussed output gap seems to have an aspect of an indicator of the mismatch between supply and demand.