Is the Bangko Sentral in Trouble? 2 of 3
What can the people do if the government itself violates the law? Not much especially if no harm is felt. And even if the violation ultimately leads to a bust that hurts the people, much less so, it seems. The violation of the law I am speaking about is the successive administrations’ neglect in funding [...]
Innovators Love a Stable Peso 1 of 3
Note: This post has been re-written in a more accessible and longer style. Please click here for link to Post 132, the better version. An independent central bank is the linear descendant of the gold standard; in fact, its very innovative replacement fit for our time. The operative word here is “independent.” By being independent [...]
Innovation and Independence for RBNZ in Central Banking – 2 of 2
(Start of Part II of II) A critical element in NZís inflation targeting is the separation of roles: monetary policy through the central bank takes care of price stability, i.e. inflation, while fiscal policy through the rest of the government takes care of growth and domestic stability.
Singleton Story of Innovation and Independence for the RBNZ – 1 of 2
As the first country in 1988 to adopt a formal inflation target, New Zealand proves that a nation, as one, can be innovative. New Zealanders used to be really rich in the world even as the country had a strong socialist streak with cradle-to-grave entitlements. The problem started in 1958 when they lost their main [...]
Restoring Forests in the Philippines – 2 of 2
Afforestation and curbing deforestation, one of Stern’s (Post #24) four-part framework to ease climate change, seems a great opportunity for the Philippines. Yet, it is an incredible challenge if not an impossible dream. Part II of II. For the Philippines, carbon emissions trading could lighten the task of replanting trees. It may not provide enough [...]
Restoring Forests in the Philippines – Fixing with the Innovator Peso
Part I of II. Afforestation and curbing deforestation, one of Stern’s (See Post #24) four-part framework to ease climate change, seems a great opportunity for the Philippines. Yet, it is an incredible challenge if not an impossible dream. I left PICOP, Bislig in May 1982 soon after a study was completed showing the difficulty of [...]
Introducing Innovator Money 23.0
The expectation of currency debasement strangles innovation. It takes time to take invention to successful commercialization. Expected devaluation adds to risk and the required return. It also makes people see currency speculation – by keeping their money in foreign currency – as a good alternative to innovation. Most people lost confidence in the peso because [...]
Innovation and Supernormal Profits 3.0
Profit is a toxic word for some; even a bad stain to be washed away. Yet one can look at profit as a way of keeping score. Accountants and Economists define profit differently. For Accountants, profit is what remains after taking out expenses from sales. Expenses may be cash or non-cash. The non-cash part may [...]
