This July marks the second year "anniversary" of the Thai baht devaluation – the one that started the Asian currency crisis. In its aftermath, quite a number of realizations are now evident. This paper seeks to present further analyses and lessons as well as pose some policy proposals.
Mainstream economics relegated political economy to a backseat position during the dominance of neo-liberalism in the 1980s till the early
1990s. But the tide has changed. Market failures in the 1990s, as exemplified by the successive global financial crises that culminated in the Asian crisis, have forced a retreat of free-market orthodoxy. Keynesian economics, including its left-wing variety, has recovered lost ground. Further, even the strongest advocates of neoclassical economics have recognized the need for better institutions and better regulations. Suffice it to say that in this condition, political economy has likewise made a comeback.
We wish to point out a legal controversy regarding the appointment of Mr. Rafael Buenaventura as the new governor of the Bangko Sentral ng Pilipinas (BSP). The new Central Bank Act (Sec. 6(a) provides that “the governor of the Bangko Sentral shall be head of a department and his appointment shall be subject to confirmation by the Commission on Appointments.” In this light, we appeal to the Commission on Appointments (CA) to exercise its right, if not fulfill its obligation, to subject to the confirmation process President Estrada’s appointment of Mr. Rafael Buenaventura to the position of Bangko Sentral governor.