THE GLOBAL CRISIS IMPACT ON INDONESIA REGIONAL ECONOMY
Abstract
This paper discusses the impact of global financial crisis to the Indonesia’s economy by using the simultaneous macro model approach. The analysis and simulation results of such model show that the impact of the global financial crisis is dominantly distributed through the trade line, which decreases the regional output. To the components of aggregate demand, the movement of exchange rate has major effect to the exports and imports, whereas to the consumption and investment, it gives relatively small effect. The impact of external shock, which causes the depreciation of Rupiah, is relatively small to the increase of inflation.
JEL classification: C32, E44
Keywords : Financial crisis, simultaneous model, Indonesia.
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References
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Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
