Open AccessA Time-Series Analysis of Selected Economic Indicators Affecting Inflation in the Philippines: 2003-2020
Author(s) -
Danielle Marie P. Pama,
Herbert L. Peliglorio,
Anna Corinna D. Pizarro-Uy
Publication year - 2022
Publication title -
journal of economics, finance and accounting studies
Language(s) - English
Resource type - Journals
ISSN - 2709-0809
DOI - 10.32996/jefas.2022.4.2.23
Subject(s) - economics , cointegration , inflation (cosmology) , distributed lag , exchange rate , currency , purchasing power , inflation rate , monetary economics , time series , purchasing power parity , monetary policy , macroeconomics , autoregressive model , unemployment , econometrics , statistics , mathematics , theoretical physics , physics
The Philippines is a country that has been experiencing a gradual rise in inflation in the past decades, and this affects the prices of goods and services, therefore decreasing the currency's purchasing power. The aim of this study is to analyze the relationship between Inflation and selected economic indicators, such as Unemployment Rate, Money Supply, Policy Rate, and Exchange Rate, based on time series quarterly data from the year 2003 to 2020 in the Philippines. This effect was investigated using the autoregressive distributed lag (ARDL) cointegration technique. The results showed that Inflation, which is the rate of increase in prices over a given period in the Philippines, has a significant positive relationship with the Policy rate in the short run.