Scribd
Upload
24 views

Module 3 Forum Forio, Ginalyn F.: 1. Soaring Prices of Various Commodities

The document discusses potential monetary policy tools to address soaring commodity prices and the highest inflation rate since 2009 in the Philippines. These include increasing supply through policies that encourage greater investment, competition and innovation to maintain lower prices, as well as controlling aggregate demand to reduce inflation in the short term.

Uploaded by

Lhyn Forio
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
24 views

Module 3 Forum Forio, Ginalyn F.: 1. Soaring Prices of Various Commodities

The document discusses potential monetary policy tools to address soaring commodity prices and the highest inflation rate since 2009 in the Philippines. These include increasing supply through policies that encourage greater investment, competition and innovation to maintain lower prices, as well as controlling aggregate demand to reduce inflation in the short term.

Uploaded by

Lhyn Forio
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Module 3 Forum

FORIO,GINALYN F.

It was year 2018 and the Filipino people have experienced strongly critical economic problems. If
you were the economic policy czar of the Duterte administration what monetary policy tool are you
going to use to resolve the following:

1. Soaring prices of various commodities

ANSWER:

Soaring prices of various commodities is undeniable. The prices of everything have gone up. This
could be felt by everybody. History has shown that the poor are those who suffer most when there
is a rise in food prices, whereas their income has not increased. The problem is that these increases
will continue. If I were the economic policy czar of Duterte Administration, I will do something to
stop these increase in prices because it might cause riots and hungry mobs acting like animals
seeking food to survive. For me, the solution is the law of supply and demand. When the supply is
high and the demand is low, naturally, there will be no rise in prices.

2. Highest inflation rate since 2009

ANSWER:

• If I were the economic policy czar of the Duterte Administration, I will going to use the Economic Policy
as a tool to resolve this problem. This policies seek to increase productivity, competition and innovation
which can maintain lower prices. I think a reduction in company taxes will encourage to greater investment.
A reduction in taxes which increases risk-taking and incentives to work. And policies to open a market to
more competition to increase supply and lower prices. Rising productivity will cause an outward shift of
aggregate supply. The government might also choose to introduce direct controls on some prices and wages.
But the most appropriate way to control inflation in the short term is for the government and the central
bank to keep control of aggregate demand to a level consistent with our productive capacity.

You might also like