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Journal : Journal of Economics, Business,

THE SYNERGY OF FISCAL AND MONETARY POLICY FOR REAL SECTOR Ika Permatasari; Hendry Cahyono; Dwi Wulandari; Hadi Sumarsono
Journal of Economics, Business, & Accountancy Ventura Vol 16, No 3 (2013): December 2013
Publisher : STIE Perbanas Surabaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v16i3.218

Abstract

One of the causes of low growth and the real sector's contribution is economic policy, both fiscaland monetary that is lesssupportive of the economic actors in the real sector. From the fiscalside, the budget magnitudescan be seen to the realsector (e.g. Agriculture) that is less than 5percent. The funds are still skimpy that assessed itis difficult todevelop the agricultural sector.From the monetary side, the interest rate is judged still too high and cause economic actors inthe real sector is quite difficult to get capital access. This study aims to find synergies betweenfiscal and monetary policy to support the real sector. This research was using Analytical Hierarchy Process (AHP) through the distribution ofquestionnaires to respondents of SME in Surabaya. The results showedthat interest rate and capital accessto financial institutions are factorsconsidered by SME in obtaining credit (monetary policy). On the other hand, raw materials subsidies and fuel are also a major concern for them to increase production output (fiscal policy).
THE SYNERGY OF FISCAL AND MONETARY POLICY FOR REAL SECTOR Permatasari, Ika; Cahyono, Hendry; Wulandari, Dwi; Sumarsono, Hadi
Journal of Economics, Business, and Accountancy Ventura Vol. 16 No. 3 (2013): December 2013
Publisher : Universitas Hayam Wuruk Perbanas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v16i3.218

Abstract

One of the causes of low growth and the real sector's contribution is economic policy, both fiscal and monetary that is lesssupportive of the economic actors in the real sector. From the fiscal side, the budget magnitudescan be seen to the realsector (e.g. Agriculture) that is less than 5 percent. The funds are still skimpy that assessed itis difficult todevelop the agricultural sector. From the monetary side, the interest rate is judged still too high and cause economic actors in the real sector is quite difficult to get capital access. This study aims to find synergies between fiscal and monetary policy to support the real sector. This research was using Analytical Hierarchy Process (AHP) through the distribution ofquestionnaires to respondents of SME in Surabaya. The results showedthat interest rate and capital accessto financial institutions are factors considered by SME in obtaining credit (monetary policy). On the other hand, raw materials subsidies and fuel are also a major concern for them to increase production output (fiscal policy).