Eagle Watch: On Attracting Foreign Investments and Managing Inflation

Ateneo Economics Professors and Eagle Watch Senior Fellows Dr. Fernando Aldaba and Dr. Alvin Ang shares their insights on proposals to relax the "60-40" rule in the 1987 Philippine Constitution in order to attract more foreign investments through an article published last June 30, 2014 in BusinessMirror. They also mention the importance of increasing local investors in order to give a positive signal for foreign investors and for government to implement proper policies for increasing investments without overdepending on remittances. The article also features a photo of the sealing of the partnership between the BusinessMirror and the Eagle Watch quarterly forum. 

Meanwhile, Dr. Alvin Ang examines why monetary authorities such as the Bangko Sentral ng Pilipinas does not always increase policy rates as expected and how managing inflation is more than just about monetary policy in another article also published in BusinessMirror last June 26, 2014. The article makes a distinction between headline inflation, which is the figure regularly reported, and core inflation, which adjusts the headline figure for "temporary disturbances and shocks".  Dr. Ang explains that core inflation reflects long-term trends which monetary authorities can expect. However, headline inflation is more vulnerable to external pressures and other sudden increases in prices. Managing headline inflation, therefore, involves a more comprehensive approach other than active monetary policy.

See BusinessMirror article on Charter change here
See Dr. Alvin Ang's article on inflation here