This study was prompted by the relative paucity of policy analysis on how strong monetary impulses are relative to fiscal policy impulses in the Philippines and a lingering suspicion that economic management in the Philippines adheres strongly towards fiscal activism or the patently Keynesian approach as echoed in the analysis of a great number of economists who hold the view that the monetarist approach is weak in the developing world. The study shows that monetary policy in the Philippines tends to have a weaker immediate impact on output growth compared to fiscal policy. However, over a much longer period of time, the cumulative or long term effect of growth in money stock tends to be much stronger than expected relative to an equiproportionate expansion in government spending in the Philippines.