Highlights from Econ-tuhan Session 3 on “The Role of BSP in the Economy: Monetary Policy”

The Department of Economics of Ateneo de Manila University, in collaboration with the Bangko Sentral ng Pilipinas (BSP), successfully conducted the third session of its "Econ-tuhan" series on 28 November 2024. Held onsite at the BSP office in Manila, this session welcomed around 40 private and public high school teachers and administrators who desire to deepen their understanding of the BSP's role in managing the financial system and the aggregate economy.

The session, titled "The Role of BSP in the Economy: Monetary Policy," featured Mr Arnel Adrian C Salva, Deputy Director of the BSP Economic and Financial Learning Office (EFLO) as keynote speaker. He delivered an engaging and comprehensive lecture on the BSP's mandates, the intricacies of monetary policy, and its applications in ensuring economic stability. The event was moderated by Dr Noel P De Guzman, Acting Chairperson of Ateneo’s Department of Economics.

During the lecture, Mr Salva explained the three primary functions of the BSP. These include maintaining price stability through the management of inflation, ensuring financial stability by safeguarding a secure and reliable banking system, and facilitating efficient payment and settlement systems that allow seamless transactions between banks and financial institutions. 

Mr. Salva elaborated on the inflation-targeting framework used by the BSP to achieve its price stability mandate. He also emphasized the importance of understanding the causes of inflation, including cost-push factors such as global oil price increases and demand-pull inflation driven by high consumer demand. The discussion further explored the broader implications of monetary policy on economic activity. Mr Salva presented scenarios where an imbalance in money supply — either too much or too little — could affect business decisions, consumer behavior, and overall demand. He contrasted the BSP’s monetary policy with fiscal policy, noting that both policies work together to maintain economic stability and growth. Another highlight of the session was an explanation of the BSP’s role in the country’s payment and settlement systems, ensuring that these systems are safe, efficient, and reliable, fostering economic growth by facilitating smooth financial transactions. 

To cap off the day, participants were treated to a short tour of BSP's art collections, which all attendees enthusiastically joined.

The “Econ-tuhan with BSP” series underscores the importance of fostering economic and financial literacy among educators. Through continued collaboration, the Ateneo Department of Economics and the BSP remain committed to providing academic professionals and leaders with the knowledge and tools to navigate the complexities of economic policy and practice.

For those who missed the event, the speaker's presentation is available here, and the department encourages everyone to follow the Facebook Page (here) tuned for future seminars in the 2024-2025 school year.

For any inquiries regarding future events, please contact Ms Dani Andres at economics.soss@ateneo.edu.