The Role of Central Bank Overview
Most countries have some form of Central Bank serving as the principle authority for the nation's financial matters.
Primary duties for a Central Bank include:
o Implement a monetary policy that provides consistent growth and employment
o Promote the stability of the country's financial system
o Manage the production and distribution of the nation's currency
o Inform the public of the overall state of the economy by publishing economic statistics
Fiscal and Monetary Policy
Fiscal policy refers to the economic direction a government wishes to pursue regarding taxation, spending, and borrowing.
Monetary policy is the set of actions a government or Central Bank takes to influence the economy in an attempt to achieve its fiscal policy.
Central Banks have several options they can use to affect monetary policy, but the most powerful tool is their ability to set interest rates.
How Central Banks Use Interest Rates to Implement Fiscal Policy
A primary role for most Central Banks is to supply operational capital to the country's commercial banks. This is done by offering loans to these banks for short time periods – usually on an overnight basis.
This ensures the banking system has sufficient liquidity for businesses and individual consumers to borrow money, and the availability of credit has a direct impact on business and consumer spending.
The Central Bank charges interest on the short-term loans it provides. The rate charged by the Central Bank affects the interest rate that the banks charge their customers as the banks must recover their cost (the interest they paid) plus earn a profit.
Central Banks use the relationship between the short-term rates at which it offers loans, and the interest rate the banks charge, as a way to influence the cost for the public to borrow money.
they charge, making borrowing less costly for consumers which the Central Bank hopes will lead to an increase in overall spending.
If a tightening of the economy is needed to slow inflation, the Central Bank can increase interest rates making loans more expensive to acquire, which could lead to an overall reduction in spending.
The National Economic and Development Authority (Filipino: Pambansang Pangasiwaan sa Kabuhayan at Pagpapaunlad), abbreviated as NEDA, is an independent cabinet-level agency of the Philippine government responsible for economic development and planning. It is headed by the President of the Philippines as chairman of the NEDA board, with the Secretary of Socio-Economic Planning, concurrently NEDA Director-General, as vice-chairman. A number of Cabinet members, the Governor of the Central Bank, the Chairman of the Metropolitan Manila Development Authority, the Governor of the Autonomous Region in Muslim Mindanao, the Chairman of the Commission on Information and Communications Technology, the Chairman of the Subic-Clark Area Development Corporation, and the National President of the Union of Local Authorities of the Philippines are members of the NEDA Board.
The present Director-General is Ernesto Pernia as appointed by president Rodrigo Duterte
The powers and functions of the NEDA reside in the NEDA Board. It is the Philippines' premier social and economic development planning and policy coordinating body. The Board is composed of the President as chairman, the
Secretary of Socio-Economic Planning and NEDA Director-General as vice-chairman, and the following as members: the Executive Secretary and the Secretaries of Finance, Trade and Industry, Agriculture, Environment and Natural Resources, Public Works and Highways, Budget and Management, Labor and Employment, and
Interior and Local Government.
The following have since been added as members to the Board: the Secretaries of Health, Foreign Affairs, and Agrarian Reform (per Memorandum Order No. 164, dated 21 March 1988); the Secretary of Science and Technology (per Memorandum Order No. 235, dated 19 May 1989); and the Secretary of Transportation and
Communications (per Memorandum Order No. 321, dated 26 September 1990). In addition, the Secretary of Energy (per Republic Act No. 7638, approved December 9, 1992) and the Governor of the Bangko Sentral ng Pilipinas (per Section 124 of Republic Act No. 7653, approved June 14, 1993).
On April 22, 2006, the NEDA Board was reconstituted through Administrative Order No. 148, adding eight new members and replacing five original members.
The currently NEDA Board Members are (as of June 30, 2016):
Ernesto Pernia, Vice-Chair, Director-General of National Economic and Development Authority
Benjamin Diokno, Secretary of Department of Budget and Management
Carlos Dominguez III, Secretary of Department of Finance
Manny Piñol, Secretary of Department of Agriculture
Mark Villar, Secretary of Department of Public Works and Highways
Gina Lopez, Secretary of Department of Environment and Natural Resources
Arthur Tugade, Secretary of Department of Transportation and Communications
Alfonso Cusi, Secretary of Department of Energy
Leoncio Evasco, Jr., Secretary of the Cabinet
Fortunato dela Peña, Secretary of Department of Science and Technology
Amando Tetangco, Jr., Governor of Bangko Sentral ng Pilipinas
Emerson Carlos, Chairman of Metropolitan Manila Development Authority
Wanda Corazon Teo, Secretary of Department of Tourism
Ramon Lopez, Secretary of Department of Trade and Industry
Vacant, Chairman of Housing and Urban Development Coordinating Council
Mujiv Hataman, Governor of the Autonomous Region in Muslim Mindanao
Christopher Go, Secretary of Presidential Management Staf
Diwa Guinigundo, Deputy Governor of Bangko Sentral ng Pilipinas
Luwalhati Antonino, Chairwoman of Mindanao Development Authority
Alfonso Umali Jr., President of Union of Local Authorities of the Philippines
The Board is assisted by six Cabinet-level inter-agency committees:
1. Development Budget Coordination Committee (DBCC)
2. Infrastructure Committee (InfraCom)
3. Investment Coordination Committee (ICC)
4. Social Development Committee (SDC)
5. Committee on Tariff and Related Matters
6. Regional Development Committee (RDCom)
