Does Indonesia’s Macroeconomic Work Well Towards the Political Year?
Kiki Verico
No 201819, LPEM FEBUI Working Papers from LPEM, Faculty of Economics and Business, University of Indonesia
Abstract:
This paper utilizes the timeframe of 2014–2018 as the period with some of the global underperformed macroeconomic indicators. This paper found that in late 2016, Indonesia’s macroeconomic indicators started shown some improvements that keep real and monetary sector’s equilibrium to be stable. This paper observes the external balance of current account, exchange rate stability, inflation and interest rate as well as consumption patterns, saving-investment gap, fiscal discipline and fiscal sustainability. It analyses the government expenditure multiplier, real and monetary sector stability and institutional coordination between fiscal authority, monetary authority, and financial service authority. Real sector improvements which have been rolling since 2017 has significantly contributed to the recent Indonesia’s macroeconomic stability. Technically, if all on the track, this will sustain during the upcoming political year of 2019.
Keywords: Current; Account; —; Exchange; Rate; —; Economic; Growth; —; Inflation; —; Interest; Rate; —; Saving-Investment; Gap; —; Real (search for similar items in EconPapers)
JEL-codes: L95 R22 R53 (search for similar items in EconPapers)
Date: 2018-04, Revised 2018-04
New Economics Papers: this item is included in nep-sea
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Citations: View citations in EconPapers (1)
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https://lpem.org/repec/lpe/papers/WP201819.pdf First version, 2018 (application/pdf)
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Persistent link: https://EconPapers.repec.org/RePEc:lpe:wpaper:201819
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