What would happen if the Philippines don’t have any monetary policy?

Monetary Policy is the monitoring and control of money supply by the in the
Philippines. This is used by the government to be able to control inflation (increase in
the prices of goods and services) and stabilize currency.

Can you see a possible solution on how we will be able to prevent the inflation in
the Philippines today?

Main cause of inflation was more jobs and higher wages increase household
incomes and lead to a rise in consumer spending, further increasing aggregate
demand and the scope for firms to increase the prices of their goods and services.
When this happens across a large number of businesses and sectors, this leads to
an increase in inflation.

Can you create a new Monetary Policy Instruments that will help the supply of
money in the Philippines?

monetary policy instruments achieve the desired level of money supply. It includes
raising/reducing the BSP's policy interest rates; increasing/decreasing the reserve
requirement; encouraging/discouraging deposits in the overnight deposit facilities
(ODF) and term deposit facilities (TDF) by banks; increasing/decreasing its rediscount
rate on loans extended to banking institutions on a short-term basis against eligible
collaterals of banks’ borrowers; and outright sales/purchases of the BSP’s holdings of
government securities. The BSP’s main policy instrument used to signal the stance of
monetary policy is the overnight reverse repurchase (borrowing) rate.