The Philippine peso: Strongest currency in Asia! GOOD NEWS

[istoryador]

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You dont understand. The strong peso is not bouyed by good economy. How many times did I post that the strong peso is artificial and it does not translate that the economy is doing good. As I mentioned before OFW remittances contribute LARGELY of this strength. Plus the dollar is weakening.

YOu are fooled by this strong peso thing.

[bcasabee]

And after we don't believe that the economy is going strong? What do you want us to do next? Huh? Join the NPA? Leave our jobs and march on the streets to protest? Huh? What's next?

[giver_bert]

As for a layman's point of view, figures are just figures, to many.. they are more consern at the impact of the exchange rate fluctuations on living standards.. of which we need to understand and ascertain which variables affect living standards.. three particular variables: the first one is productivity growth, which is output per unit input, generally labour productivity.. in the long run, that is the only way to have sustainable increases in our living standards.. the second one, in the short to medium term, is our employment growth from lower unemployment or from increased labour participation.. the third one is inflation.. if we have lower price increases for given nominal incomes, we will have higher real income gains..

not unless, you were able to assess as to the nature of effect and it's extent (exchange rate) to these varialbles.. i personally think our administration can just inject the idea that our economy is doing good/at an improving state..


Has anybody here wonder how important exchange rate effects are for living standards of filipinos

I may also cite, that there are other factors that are more important for living standards than the exchange rate effects.. first, the overall state of aggregate demand is key for the economy.. that is linked to government spending, consumption and investment, and is affected by interest rates and consumer confidence.. that is what is driving the economy.. second is the state of foreign demand, particularly income growth in the united states.. and lastly, the underlying trend in productivity growth, which is linked to investment and technological change..

those are by far, the three factors that are fundamental to our living standards.. exchange rate has an effect, but it is not as dominant as these three factors.. errr..

[kolz]

You dont understand. The strong peso is not bouyed by good economy. How many times did I post that the strong peso is artificial and it does not translate that the economy is doing good. As I mentioned before OFW remittances contribute LARGELY of this strength. Plus the dollar is weakening.

YOu are fooled by this strong peso thing.

Okay I'm not an economist, but can you explain the data below? From the accounts below it seems economic indicators for this period is positive (slow CPI growth, etc).









Ako na lang ning gi-present diri bay istoryador for you to comment. I have access to the full goverment data and a copy of the report from IMF if you would like also to criticize that one.

And for more info, I think this was a direct result of the goverments plan .... (click on the link below).

Asian Institute of Management Report (Feb. 2006)

[kolz]

Ok here's another economic indicator that is on the rise - Employment Rate, and Lower Inflation:

Employment Report

Report on Inflation

@istoryador Gi unsa man nimo pag derive ang imong formula for you to say that the economy is not improving? Give us your data to support your claim.

[pandisal]

lol.. he can't afford a pandesal yet...

[Streetcar]

You dont understand. The strong peso is not bouyed by good economy. How many times did I post that the strong peso is artificial and it does not translate that the economy is doing good. As I mentioned before OFW remittances contribute LARGELY of this strength. Plus the dollar is weakening.

YOu are fooled by this strong peso thing.

This report by Morgan Stanley, a worldwide investment firm, my younger brod used to work in its San Francisco office. Anyhow, this report backs up Istoryador's claim here's why. Read on...

http://www.morganstanley.com/GEFdata...n.html#anchor7

[Sanosuke]

You dont understand. The strong peso is not bouyed by good economy. How many times did I post that the strong peso is artificial and it does not translate that the economy is doing good. As I mentioned before OFW remittances contribute LARGELY of this strength. Plus the dollar is weakening.

YOu are fooled by this strong peso thing.

Daghan man factors why the dollar is weakening and the Peso goes stronger..

1. OFW's
2. Worldwide factors
3. E-VATs that we are paying


I know this news about the peso getting stronger is not enough to go into the streets and party.. but at least we could just count our blessings instead of $h!T...

As a mathematician's / engineer's point of view... To solve the whole problem, solve it one by one, or piece by piece...

[Rance]

This report by Morgan Stanley, a worldwide investment firm, my younger brod used to work in its San Francisco office. Anyhow, this report backs up Istoryador's claim here's why. Read on...

http://www.morganstanley.com/GEFdata...n.html#anchor7

I don't agree and I don't see any statement that the performance of the Philippine econmy is dull.. indeed this is a good news..

Based on the report:

- the 06 GDP forecast is good from 4.5% to 5.5% (vs. IMF forecast of 5%).
- there were fiscal reforms, which are among investors’ biggest concerns, appear on target naman that means the investment community are confident.
- VAT implementations and collections
- confident about the macro environment
- OFW remittances is the driver of growth

The stronger Peso is the result of these economic drivers and the economic data are not faking to the eyes of the government opposition, leftist, communist and NPA

[baron]

^^ These are good economic indicators that continuously project economic gains.

The reduction of government debt by 1.9% attributed to the stronger peso also adds up to the country's economic gains. All of these and the IMF's recognition on the importance of implementing economic reforms under this administration show that these are all good for the economy.