Journal of Scientific Research, Education, and Technology
Vol. 4 No. 2 (2025): Vol. 4 No. 2 2025

The Effect of Economic Recovery Budget Efficiency on Price Stability in Indonesia: The Moderating Effect of Covid-19 Fluctuations

KUSUMAWARDHANI, ANDINI (Unknown)
FAJRI, MOH. NAJIKHUL (Unknown)



Article Info

Publish Date
26 May 2025

Abstract

People's purchasing power are dropped during the coronavirus disease 2019 (COVID-19) pandemic resulting in deflation. This condition will aggravate the macroeconomic performance and economic activity of the community. The government as an economic stabilizer must take appropriate steps to create a good economic climate. On this basis, this study was formulated to review the technical efficiency of the social and economic recovery safety policy on price level movements during the COVID-19 period. This study uses efficiency analysis: Data Envelopment Analysis and Regression of short-term OLS-Estimator (STEOLSE) which involves all components of the social-economic recovery budget, inflation, economic uncertainty, economic policy uncertainty, and COVID-19 fluctuations. The results suggest that the technical efficiency of the social-economic recovery policy in the previous period will lead to a decrease in the price level. Meanwhile, the increase in COVID-19 cases caused prolonged deflation. This indicates that good budget absorption will be followed by an increase in people's purchasing power. However, the increase in COVID-19 cases will encourage people to continue to practice social distancing so that consumption activities are also disrupted.

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Journal Info

Abbrev

jrest

Publisher

Subject

Computer Science & IT Economics, Econometrics & Finance Education Engineering Social Sciences

Description

FOCUS AND SCOPE JSRET (Journal of Scientific Research, Education, and Technology) encourages scientific and technological research, particularly with regard to Indonesia, but not just in terms of authorship or regional coverage of current issues. Scientists, instructors, senior researchers, project ...