Monetary and fiscal policy mix connectivity towards the business cycle in Indonesia
This research is based on the magnitude of the influence of monetary and fiscal aspects, namely the money supply, exchange rates, government spending, and taxes on the business cycle in Indonesia. This study aims to examine the effect of the connection between the monetary and fiscal policy mix on t...
Main Authors: | , |
---|---|
Format: | Article |
Language: | English |
Published: |
Master Program in Economics, Graduate Program of Universitas Jambi
2021-06-01
|
Series: | Jurnal Perspektif Pembiayaan dan Pembangunan Daerah |
Subjects: | |
Online Access: | https://online-journal.unja.ac.id/JES/article/view/11489 |
id |
doaj-cd5317eb7c0d48509f0f0a964c822665 |
---|---|
record_format |
Article |
spelling |
doaj-cd5317eb7c0d48509f0f0a964c8226652021-08-02T12:17:05ZengMaster Program in Economics, Graduate Program of Universitas JambiJurnal Perspektif Pembiayaan dan Pembangunan Daerah2338-46032355-85202021-06-019213915210.22437/ppd.v9i2.1148925142Monetary and fiscal policy mix connectivity towards the business cycle in IndonesiaRegina Niken Wilantari0Imro'atul Husna Afriani1Economics Department, Faculty of Economics and Business, Universitas Jember, IndonesiaEnglish Education Study Program, Universitas 17 August 1945, IndonesiaThis research is based on the magnitude of the influence of monetary and fiscal aspects, namely the money supply, exchange rates, government spending, and taxes on the business cycle in Indonesia. This study aims to examine the effect of the connection between the monetary and fiscal policy mix on the business cycle in Indonesia. For analysis purposes, secondary data was used in the form of time-series data from 1970–2017. The method used is the Vector Error Correction Model (VECM) to see long-term and short-term relationships. In the estimation results, it is found that in the long-term period, the monetary variables (money supply and exchange rates) and fiscal variables (government expenditures and taxes) have a significant positive effect on the business cycle in Indonesia.In contrast, the monetary variables that have a significant effect in the short-term period are only the amount variable money supply. There are no fiscal variables that have a significant effect on the business cycle in Indonesia. The interaction of monetary and fiscal policies is still effectively implemented in Indonesia.https://online-journal.unja.ac.id/JES/article/view/11489business cycle, monetarymoney supplyvector error correction model |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Regina Niken Wilantari Imro'atul Husna Afriani |
spellingShingle |
Regina Niken Wilantari Imro'atul Husna Afriani Monetary and fiscal policy mix connectivity towards the business cycle in Indonesia Jurnal Perspektif Pembiayaan dan Pembangunan Daerah business cycle, monetary money supply vector error correction model |
author_facet |
Regina Niken Wilantari Imro'atul Husna Afriani |
author_sort |
Regina Niken Wilantari |
title |
Monetary and fiscal policy mix connectivity towards the business cycle in Indonesia |
title_short |
Monetary and fiscal policy mix connectivity towards the business cycle in Indonesia |
title_full |
Monetary and fiscal policy mix connectivity towards the business cycle in Indonesia |
title_fullStr |
Monetary and fiscal policy mix connectivity towards the business cycle in Indonesia |
title_full_unstemmed |
Monetary and fiscal policy mix connectivity towards the business cycle in Indonesia |
title_sort |
monetary and fiscal policy mix connectivity towards the business cycle in indonesia |
publisher |
Master Program in Economics, Graduate Program of Universitas Jambi |
series |
Jurnal Perspektif Pembiayaan dan Pembangunan Daerah |
issn |
2338-4603 2355-8520 |
publishDate |
2021-06-01 |
description |
This research is based on the magnitude of the influence of monetary and fiscal aspects, namely the money supply, exchange rates, government spending, and taxes on the business cycle in Indonesia. This study aims to examine the effect of the connection between the monetary and fiscal policy mix on the business cycle in Indonesia. For analysis purposes, secondary data was used in the form of time-series data from 1970–2017. The method used is the Vector Error Correction Model (VECM) to see long-term and short-term relationships. In the estimation results, it is found that in the long-term period, the monetary variables (money supply and exchange rates) and fiscal variables (government expenditures and taxes) have a significant positive effect on the business cycle in Indonesia.In contrast, the monetary variables that have a significant effect in the short-term period are only the amount variable money supply. There are no fiscal variables that have a significant effect on the business cycle in Indonesia. The interaction of monetary and fiscal policies is still effectively implemented in Indonesia. |
topic |
business cycle, monetary money supply vector error correction model |
url |
https://online-journal.unja.ac.id/JES/article/view/11489 |
work_keys_str_mv |
AT reginanikenwilantari monetaryandfiscalpolicymixconnectivitytowardsthebusinesscycleinindonesia AT imroatulhusnaafriani monetaryandfiscalpolicymixconnectivitytowardsthebusinesscycleinindonesia |
_version_ |
1721232682389602304 |