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HOW IS THE MONETARY AND FISCAL POLICY RELATED TO INTERNATIONAL TRADE ? Rangkuty, Dewi Mahrani; Nasution, Lia Nazliana; Hasyyati, Zata; Siregar, Sulisna Dewi; Firmansyah, Didi
International Conference on Humanity Education and Society (ICHES) Vol. 3 No. 1 (2024): Third International Conference on Humanity Education and Society (ICHES)
Publisher : FORPIM PTKIS ZONA TAPAL KUDA

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Abstract

Policymakers have grappled with issues arising from disparities in monetary, fiscal, and trade activities. Macroeconomists and policymakers employ fiscal and monetary policies as primary instruments to tackle these challenges. This study aims to describe how is the monetary and fiscal policy related to international trade. It is a descriptive qualitative research with a literature study method. Interest rates and money stand out as pivotal variables, garnering significant attention from Bank Indonesia due to their strong interaction with the government budget. The fiscal policy multiplier tends to be low in Indonesia.
The Monetary and Fiscal Policies on International Trade in Indonesia Rangkuty, Dewi Mahrani; Nasution, Lia Nazliana; Hasyyati, Zata; Siregar, Sulisna Dewi; Firmansyah, Didi
The Es Economics and Entrepreneurship Vol. 3 No. 01 (2024): The Es Economics And Entrepreneurship (ESEE)
Publisher : Eastasouth Institute

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58812/esee.v3i01.297

Abstract

This study is to analyze how monetary and fiscal policies contribute to trade performance in Indonesia. The specific target of this study is to analyze the contribution and influence of variables such as exchange rate, inflation, trade balance, government expenditure, Tax, and investment in the short, medium and long term in Indonesia. So that it can show how much the contribution and influence of monetary and fiscal variables on trade performance in Indonesia. The results of this study explain that the largest contribution to the trade balance is the government expenditure and investment in the previous period, the largest contribution to inflation is the government expenditure and investment in the previous period, the largest contribution to government expenditure is the exchange rate and government expenditure itself in the previous period, the largest contribution to investment is government expenditure and investment itself in the previous period, the largest contribution to the exchange rate is the exchange rate itself and investment in the previous period, the largest contribution to Tax is government expenditure and exchange rate in the previous period.