Open AccessImpact of Covid-19 on Interest Rates
Author(s) -
Yi-Wei Lo
Publication year - 2020
Publication title -
journal of asian multicultural research for economy and management study
Language(s) - English
Resource type - Journals
ISSN - 2708-9711
DOI - 10.47616/jamrems.v1i1.7
Subject(s) - interest rate , purchasing power , stimulus (psychology) , business , restructuring , monetary economics , stock market , exchange rate , financial system , market liquidity , monetary policy , debtor , financial crisis , finance , economics , debt , creditor , macroeconomics , psychology , paleontology , horse , biology , psychotherapist
The global economy is experiencing a crisis due to the Covid-19 pandemic, the stock market index has collapsed. The rupiah exchange rate against the USA dollar weakened this was due to the large number of foreign investors leaving the Indonesian financial market, the stock market plummeted. The banking sector can carry out an economic stimulus given restructuring authority for all credit or financing without requiring restrictions on the credit ceiling or type of debtor, especially debtors for MSMEs and informal workers. The economic stimulus that needs to be maximized is prundential monetary and macro policies through lowering interest rates and maintaining stability in the rupiah exchange rate. Budget relocation is also enforced to maintain the availability of basic foodstuffs for the community, which has increased due to panic buying or market panic. Also providing assistance to increase people's purchasing power.