speeches industry. the industry is expected to cooperate in matters that directly impact on our shared objectives of system efficiency and resilience. this includes clearing and settlement rules and standards, industry governance and risk management. product features such as end - user fees, delivery channels and customer service fall outside the cooperative sphere and will be used as basis of competition. the formation of the psmb and the peso net and instapay achs essentially sets in motion the operationalization of these nrps principles. the psmb serves as the industry - level cooperation and governance body composed of qualified banks and e - money issuers. by organizing as a formal body, participants can effectively identify and drive strategic initiatives to promote the efficiency and resilience of the system and promote the sustained growth of the industry. the multilateral achs, on the other hand, lays down the clearing and participation rules for a particular payment stream to facilitate electronic fund transfers among its participants. payment streams that are covered by a multilateral ach promotes greater efficiency, better risk management and interoperability compared to those that are covered by separate bilateral agreements as currently practiced. our journey towards a modern retail payment systems is just beginning but we can take pride in the significant progress we have made thus far. we couldn ’ t have gotten to this point if not for the willingness of the key stakeholders present here today to collaborate, dialogue, and commit to the nrps vision. and so let me conclude by expressing our deep appreciation for your support to the nrps. with the same commitment and cooperation, we shall move forward with the full implementation of the nrps and realize its vision of establishing a safe and efficient retail payment system in the country, a vision of a highly digital financial system in the philippines that serves the interest of all financial consumers. mabuhay po tayong lahat! 3 / 3 bis central bankers'speeches

includes a term proportional to the squared rate of goods price inflation and another term proportional to the squared rate of wage inflation each period. in this case, optimal policy involves a trade - off between inflation stabilization, nominal wage growth stabilization, and output - gap stabilization ». 17 finally, there are two important issues related to the measurement and interpretation of the output gap. first, it is well known that any output gap variable is very imprecisely estimated, particularly in real - time. second, the theoretically consistent output gap that plays a central role in the newkeynesian literature bears little resemblance to the three empirical measures presented in the paper. the theoretical output gap is defined as the deviation of output from its equilibrium level in the absence of nominal rigidities. given that the theoretically consistent output gap is model - dependant, this adds to the difficulty of defining a reliable and applicable objective function. all this indicates that, as no central bank should be committed to a pure instrument - rule, in the same way it should not commit to and make public a precise objective function. in effect, if the information changed about the transmission mechanism the central bank should have then the opportunity of changing the parameters without facing a very difficult communication task of explaining that change. woodford, michael ( 2006 ) “ rules for monetary policy ” in nber reporter : research summary spring 2006, http : / / www. nber. org / reporter / spring06 / woodford. html. blanchard, olivier and jordi gali ( 2005 ) “ real wage rigidities and the new keynesian model ” nber working paper no 11806, november 2005. see note 15. regarding the price index to use in the definition of the target for inflation i tend to sympathize with the author ’ s position. to the arguments mentioned in the paper one could add that the same analysis by woodford about the relationship between welfare and the loss function for monetary policy, demonstrates that « if prices are adjusted more frequently in some sectors of the economy than in others, then the welfare - theoretic loss function puts more weight on variations in prices in the sectors where prices are stickier … this provides a theoretical basis for seeking to stabilize an appropriately defined measure of " core " inflation rather than an equally weighted price index » 18. there are nevertheless important practical obstacles to the use of a sort of core inflation index. first, the communication difficulties would be very significant and the principle of accountability to public opinion would be compromised