Scope and limitations of the study

The conduct of analysis is limited to the available and consistent data on macro-
economic and monetary indicators from January 1989 to June 1999, a period spanning 126
months. Much of the data contains in the study are generated from secondary sources,
specifically the BSP statistical bulletin and selected Philippines economic indicators.

As far as the MCI is concerned, the indicators include those that are directly
controlled or are directly affected in BSP’s policy measures. Hence, MCI will not fully
reflect the overall stance of monetary, policy. Indicators related to other domestic asset
prices as well as fiscal policy will not be dealt with furthermore. MCI focuses on demand
side management and is assumed to be useful in the short run, not in the long term.

It is also important to note that while MCI would be useful indicator of domestic
monetary conditions, it is also a subject to some limitations. There could be a number of
issue (such as political and institutional in nature) that maybe relevant for a particular
country at a particular moment in time that are not captured in MCI. While all this issues
makes equally fascinating subject for exploration, they would in themselves necessitate
comprehensive treatment and qualify as topics for separate research. This task will be left
as a challenge to extend the scope covered and improve the methodology used in this study.