This essay examines the choice of monetary policy instrument for a small open economy under flexible exchange rate regime with some reference to Indonesia. To approach the issue a simple ad-hoc aggregate supply-IS-LM model is used for the analysis. Although basically the issue concerning...

The paper outlines some alternative methodologies for estimating the monetary policy reaction function. It also discusses some of the advantages and disadvantages for each available alternative to be implemented in the case of small developing economies. Additionally, a simple case study using...

This paper investigates whether or not monetary policy has been conducted efficiently in five selected ASEAN economies. It derives a utility-consistent social loss function, as a metric for welfare, to assess monetary policy efficiency in a small open economy model. An optimal monetary policy...

Reducing fuel subsidy and taxing carbon have a tendency toward reducing energy consumption and carbon emissions. However, both instruments may have differing impacts in their magnitudes of the emissions reduction and on the economy as a whole. Using INDONESIA-E3 (Economy-Equity-Environment)...

This paper examines the suitability of a simple structural small open economy model in characterising the economic dynamics in five ASEAN economies. The model is a variant of a small open economy model with imperfect competition and nominal rigidities. It is then confronted to the data using...

The relationship between economic growth and government spending (the size of the government involvement in economic activity) is an interesting issue that has been a subject of controversy and debate. The direction of how government size associates with economic growth has so far been...

Infrastructure inadequacy is widely recognised as one of the main hindrance for further advancement of Indonesian economy. New development has been lacking for the past decade and maintaining existing facilities is no less a problem due to low government funding capacity. Public private...

This paper reviews and presents the concise history of higher education Indonesia from pra-colonial period to the latest era when the Government of Republic Indonesia proposed the Educational Legal Entity Bill and the Law on National Education System.

This study analyzes some social economic aspects of informal activities using case study of flea markets in Bandung Municipality. The objectives are to provide a description of the information we collected during our field survey, and report our findings on the Willingness to Pay (WTP) of people...

This study finds that microfinance has positive impact to improvement of MSE’s ferformance indicated by sales; the difference in regional characteristic of MSE is also play role in determining its business scale. Since doubling amount of loan has negative impact to the performance, it’s very...