Media Ekonomi dan Manajemen
Vol 40, No 1 (2025): January 2025

Monetary and Fiscal Policy on Inflation in Indonesia: Threshold Vector Autoregression Approach

Yuliati, Lilis (Unknown)
Dana, Badara Shofi (Unknown)
Musaiyaroh, Ati (Unknown)



Article Info

Publish Date
18 Jan 2025

Abstract

The combination of monetary and fiscal policies is used to stabilize prices in Indonesia. The purpose of this study is to analyse the role of monetary and fiscal policies in stabilizing prices in Indonesia through the threshold concept. The data used is time series (2013Q1-2023Q2) with the Threshold Vector Autoregression method. The results show that the interest rate and budget thresholds can affect inflation stability. Other variables, such as the exchange rate, output gap, and FFR, have varying effects depending on the threshold. Thus, combining adjustments in monetary and fiscal policies and understanding the impact of inflation at various policymakers can better manage economic growth and maintain price stability in the long term.

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Journal Info

Abbrev

fe

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Industrial & Manufacturing Engineering

Description

For optical lens manufacturing the development of product and service quality is a key thing in answering challenges in the business competition it is developing. To achieve this determine the Key Performance Indicator (KPI), the Rejected Rate and On-Time Delivery (OTD) to measure the extent of the ...