MIMBAR : Jurnal Sosial dan Pembangunan
Volume 40, No. 1, (Juni 2024) [Accredited Sinta 3, No 79/E/KPT/2023]

Fiscal Policy, Monetary Policy and Economic Growth in Indonesia

Retnowati, Diah (Unknown)
Purnomo, Sodik Dwi (Unknown)
Jati, Damar (Unknown)
Zumaeroh, Zumaeroh (Unknown)
Adhitya, Bagus (Unknown)
Fatmawati , Anisa (Unknown)
Kencana, Heris (Unknown)



Article Info

Publish Date
27 Jun 2024

Abstract

Economic growth is still a measure of the success of policies made by the government. Indonesia, a developing country, needs the right policies to continue to encourage economic growth and rise from the crisis that has occurred. The economic crisis that occurred in 1998, 2008 and 2020 requires Indonesia to have the right fiscal and monetary policies to recover quickly. This study aims to analyze the effect of the impact of fiscal policy (taxes and government expenditure) and monetary policy (money supply, inflation, and exchange rate) on economic growth in Indonesia. The method used in this study is multiple linear regression with time series data from 1990 to 2020. The results of this study prove that tax revenue has a positive effect on economic growth in Indonesia. Meanwhile, government spending, inflation, money supply and exchange rates have a negative effect on economic growth in Indonesia. The implications of this study show that both monetary policy and fiscal policy should be made through in-depth study. The government must be able to increase tax revenue and spend state revenues on investment needs. Monetary policy must also be able to maintain low inflation and strengthen the exchange rate through trade and foreign exchange reserves.

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Journal Info

Abbrev

mimbar

Publisher

Subject

Economics, Econometrics & Finance Education Environmental Science Social Sciences Other

Description

MIMBAR, Jurnal Sosial dan Pembangunan as part of the spirit of disseminating scientific research results and ideas for comprehensive service to the Society. MIMBAR Jurnal Sosial dan Pembangunan publishes original research articles, review articles from contributors associated with social and ...