RICA MAE A.

YUGOM

Make an essay about entitled “Monetary policy and implication to the development of the Philippines: It’s

contribution to the Financial Intermediaries.”

In the different countries, such policies are made to supply guidance, uniformity, and accountability on

how departments and organizations work. An example of this is the monetary policy. According to the article

written by The Investopedia Team (2021), monetary policy is the regulation of the amount of money in an

economy as well as the medium through which the money is produced. Thus, the economy of a certain country,

whether it is expansionary or contradictory, is held by the monetary policy.

The Philippines’ economy, for example, is built using the monetary policy that was being governed by

the president of the Philippines. President Rodrigo Duterte made many contributions to the Philippines in terms

of economic recovery especially since the COVID-19 pandemic has started. One of the monetary policies that

were made is the Corporate Recovery and Tax Incentives for Enterprises Act or the law that compromises the

decrease of the corporate income tax rate. The legislation also aims to rationalize fiscal incentives to attract new

investors. Moreover, there are also various economic evaluations such as the Retail Trade Liberalization Act

and the PSA or the Public Service Act. These are made to facilitate foreign ownership restrictions for economic

liberalization and to allow foreign participation in more business.

To sum it all up, the heart of the country is the economy, and therefore, it will need monetary policy.

The contribution that was made by the monetary policy toward the Philippines is to rationalize the economy by

promoting employment, maintaining stable prices, and business expansion.

The Investopedia Team. (2021, August 19). Monetary Policy. Retrieved from

https://www.investopedia.com/terms/m/monetarypolicy.asp#:~:text=Monetary%20policy%20is%20the

%20control,economic%20growth%2C%20and%20overall%20liquidity