A review and appraisal of the government response to the 1983-84 balance-of-payments crisis

Abstract

The 1983-84 Philippine balance-of-payments crisis affected all sectors of the economy and all segmentsof society as it manifested itself in the growing unemployment and underemployment problems, in the all-time high inflation rates, and in the unprecedented contraction of the economy. Many studies have been conducted and published about the underlying causesof the economic crisis, but few have looked into the government's response to it, as well as into the impact of this responseon such concernsasgrowth, employment and inflation. This study attempts to document and critically evaluate the various stabilization measuresadopted by the Philippine Government in responseto the 1983-84 balance-of-payments crisis. A number of research fellows and consultants at the Philippine Institute for Development Studies have combined their efforts and expertise, and put together this comprehensive and objective examination of the measures adopted by the Government as a direct reaction to the crisis and of their effects on the growth prospects of the economy in the short and medium term. It is hoped that this Monograph will provide useful insights into Philippine economic planning and policy making.