Document Type
Article
Abstract
This paper attempts to investigate the impact of policy mix in dealing with the COVID-19 pandemic. We employ the New Keynesian Dynamic Stochastic General Equilibrium (DSGE) framework and the Del Negro et al. (2007) approach to estimate the model. We investigate the effectiveness of policy mix in Indonesia by taking into account real and financial linkages, as well as other market imperfections. We intend to analyze and evaluate the adequacy of monetary, fiscal, and macroprudential policy by simulating each policy option using Indonesian-specific factors and comparing them. Our findings show that policy mix has a greater impact on accelerating economic recovery but does not necessarily lead to anchor inflation
Recommended Citation
Budiman, Advis; Safuan, Sugiharso; M. Juhro, Solikin; and N. Kacaribu, Febrio
(2022)
"Pandemic Shocks And Macro-Financial Policy Responses: An Estimated Dsge-Var Model For Indonesia,"
Bulletin of Monetary Economics and Banking: Vol. 25:
No.
3, Article 5.
DOI: https://doi.org/10.21098/bemp.v25i3.1981
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol25/iss3/5
First Page
399
Last Page
438
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
Indonesia
Affiliation
University of Indonesia
