Interest rates up again, what now?

Fernando Fajardo 11/15/2018

When interest rates are high, the cost of doing business will be high. This will force business to charge more for their products. When there is inflation, the BSP responds by raising interest rates to lower it.…

GDP growth slows to 6.1 percent in 3rd quarter

Fernando Fajardo 11/08/2018

Government spending more than before, however, may also lead to much larger government deficits and to higher inflation rate. As reported yesterday by the Philippine Statistics Authority (PSA), the country’s Gross Domestic Product (GDP) grew by 6.1…

What is wrong with the projected inflation and tariffication?

Fernando Fajardo 10/25/2018

Monetary authorities conceded to missing their 2-4 percent target band for inflation this year and next. They see prices averaging 5.2 percent in 2018 and 4.3 percent in 2019. To combat surging prices, the government plans to…

The interaction of inflation, interest rates, and GDP

Fernando Fajardo 10/18/2018

An excise tax not only raises the price of the product directly and make the poor to suffer more; it also lowers output and create more joblessness among the poor. The government is lowering its real GDP…

Kill the excise tax, not the poor with higher prices

Fernando Fajardo 10/11/2018

What the government should do instead is to tax the sale of cars, with rates going up the more expensive the units. Then charge them with higher road user’s fee when they register their cars. Early this…

Economics is for all

Fernando Fajardo 10/04/2018

When even the president cannot explain convincingly why prices are rising fast in his watch, something big is missing in the literacy of our people in economics. Of course, the government has a platoon of economist at…

Interest rate, the economy, and you and me

Fernando Fajardo 09/27/2018

When the economy is overheating or operating above the country’s normal capacity to produce, inflation will follow. So the interest rate is going up now. What is interest rate? Very simply, it is the price we pay…

P.D. No. 1 and regional development: What happened?

Fernando Fajardo 09/20/2018

On this day in 1972, Marcos issued Proclamation No 1081 putting the country under martial law. Three days later, Marcos issued P.D. No. 1 which approved and adopted as part of the law of the land the…

Cebu’s population and agriculture through the years

Fernando Fajardo 09/13/2018

With 2.01 percent annual growth rate, Cebu’s population is projected to reach 4.9 million this year In the last census in 2015, Cebu was reported to have a population of 4.6 million. Still the biggest in the…

Inflation? It’s the train, stupid!

Fernando Fajardo 09/06/2018

Inflation is now running at 6.4 percent. What can you do to overcome this? The answer depends on your station in life. If you are one of those with P250,000 in annual income, you have nothing much…

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.