Monday, March 5, 2012

The "Monkeyness" of Bangko Sentral ng Pilipinas Inflation Targets

Big questions  for the moment are: Why do they make inflation target? What is it for?

This post has one job to accomplish: to show that the Inflation Target set by the Bangko Sentral ng Pilipinas is one hell of a big con act. Meaning, a big trick, a fraud, and a swindle. Inflation target is just another way to blur people's attention as to what is the real culprit why prices of goods constantly increase at the first place.

From the BSP website, here is what they say:
Inflation Target – level of inflation which the BSP aims to achieve over a given period under the inflation targeting framework. The government’s inflation target is an annual target, currently expressed in terms of a point target (with a tolerance interval of ± 1 percentage point) and is set jointly by the BSP and the government through an inter-agency body, the Development Budget Coordination Committee (DBCC), although the responsibility of, and accountability in, achieving the target rests primarily on the BSP.