Open AccessPENERAPAN METODE VECTOR AUTO REGRESSION DALAM INTERAKSI KEBIJAKAN FISKAL DAN MONETER DI INDONESIA
Author(s) -
Adrian Sutawijaya,
Etty Puji Lestari
Publication year - 2013
Publication title -
jurnal ekonomi pembangunan/jurnal ekonomi pembangunan
Language(s) - English
Resource type - Journals
eISSN - 2460-9331
pISSN - 1411-6081
DOI - 10.23917/jep.v14i1.151
Subject(s) - monetary policy , economics , vector autoregression , fiscal policy , proxy (statistics) , inflation (cosmology) , shock (circulatory) , monetary economics , macroeconomics , medicine , physics , machine learning , theoretical physics , computer science
The purpose of this study is to analyze the interaction of fiscal and monetary policy in Indonesia, especially after the introduction of fiscal and monetary policy shocks. The research method used is the vector autoregression (VAR). VAR is usually used for projecting coherent system variables and time to analyze the dynamic impact of disturbance factors contained in the system variables. Variables used in this study is the level of interest rates as a proxy for monetary policy instruments, government expenditures as a proxy for fiscal policy, inflation rates and national income. The results show that fiscal policy is a negative shock to inflation and responded with a tight monetary policy, while the shock in monetary policy will reduce national income. The application of fiscal and monetary policies that will effectively promote economic growth.