ABSTRACT
This chapter examines the various short-term macroeconomic policy reforms that the Philippines has pursued to minimize unwanted business fluctuations. The remarkable growth performance of the economy in the past few years in 21st century is one reason for the improved assessments of the country's macroeconomic performance in the future. Since economic policy reforms since 1986 have sought to integrate the Philippine economy with the rest of the worlds, it is useful to examine the growth effects of foreign trade policy reforms. In the 1970s, for instance, the Philippine government pursued an expansionary fiscal policy in an attempt to ward off the recessionary effects of the two oil price shocks in 1974 and in 1979. Monetary policy rules in the Philippines have been evolving and undergoing refinement over time. The chapter looks at key aspects of capital accumulation that have long-term growth effects, starting with human capital.
