IDEAS home Printed from https://ideas.repec.org/p/phs/dpaper/202011.html
   My bibliography  Save this paper

What Covid-19 Hath Wrought and Debt Exit Options: A Note on Deficit Financing and Public Debt Management

Author

Listed:
  • Dante B. Canlas

    (School of Economics, University of the Philippines Diliman)

Abstract

This paper opens up a study of deficit financing and management of the public debt in the context of the COVID-19 outbreak in the Philippines. Borrowings of the national government from the monetary authority and from domestic and international financial markets, as well as the options for exiting from the public debt enlarged by such borrowings are assessed. At this juncture, public spending to strengthen social safety nets for truly disadvantaged families and firms are imperatives, but taxation that relieves big corporations and shifts to households and small firms the recovery of foregone corporate income taxes through burdensome indirect taxes must be shunned. Meanwhile, growing out of the public debt through sound monetary policy and structural reforms that embrace rise in total factor productivity is the least painful option to exit out of the newly expanded public debt.

Suggested Citation

  • Dante B. Canlas, 2020. "What Covid-19 Hath Wrought and Debt Exit Options: A Note on Deficit Financing and Public Debt Management," UP School of Economics Discussion Papers 202011, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:202011
    as

    Download full text from publisher

    File URL: https://econ.upd.edu.ph/dp/index.php/dp/article/view/1534
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    COVID-19; public debt management; deficit financing; Philippines;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phs:dpaper:202011. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RT Campos (email available below). General contact details of provider: https://edirc.repec.org/data/seupdph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.