Buletin Ekonomi Moneter dan Perbankan
Vol 25 No 1 (2022)

FISCAL AND MONETARY POLICY INTERACTIONS IN INDONESIA DURING PERIODS OF ECONOMIC TURMOIL IN THE US: 2001Q1-2014Q4

Chandra Utama (Universitas Katolik Parahyangan)
Insukindro Insukindro (Universitas Gadjah Mada)
Ardyanto Fitrady (Universitas Gadjah Mada)

Article Info

Publish Date
20 Jun 2022

Abstract

This study investigates the formation of the interaction between monetary and fiscal policies in Indonesia during periods of economic turmoil in the US (external shock) based on the Hybrid New Keynesian (HNK) model. The study estimates the HNK model using the Full Information Maximum Likelihood and time-series data over theperiod 2001Q1-2014Q4. The result reveals the form of coordination is a monetary-led policy mix between active monetary policy and passive fiscal policy. The degree of coordination is down when external shock increases.

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Journal Info
Buletin Ekonomi Moneter dan Perbankan
Website

Abbrev

BEMP

Publisher

Bank Indonesia

Subject

Description

The Buletin Ekonomi Moneter dan Perbankan/Bulletin of Monetary Economics and Banking (BMEB) is an international peer-reviewed journal. This is a quarterly journal, published in January, April, July and August. The BMEB focuses on a broad range of topics covering monetary economics, banking, ...