Once Upon a Time, Debt Monetization Sounded Crazy
Gone are the days when investors balk at coordination between fiscal and monetary policy. Just look at what some emerging markets are pulling off.
Unlikely candidate.
Photographer: Veejay Villafranca/BloombergIn an era when trillions of dollars have been plowed into the global economy, one institution stands out for its activism: the Philippines’s central bank.
Bangko Sentral ng Pilipinas seems an unlikely hero given the whatever-it-takes approach of the Federal Reserve, the European Central Bank and Bank of Japan. But the Philippines has made deeper cuts to interest rates than anywhere in Asia in response to the Covid-19 pandemic; only the Reserve Bank of India comes close. That’s not even the full extent of support. BSP helped fund almost half of the government's local borrowing this year, Claire Jiao and Ditas Lopez of Bloomberg News reported Wednesday.