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Indonesia in Crisis: A Macroeconomic Perspective

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Author Info
Tubagus Feridhanusetyawan (Centre for Strategic and International Studies, Jakarta, Indonesia)
Mari Pangestu () (Centre for Strategic and International Studies, Jakarta, Indonesia)
Abstract

This paper presents an illustrative analysis of the crisis from a macroeconomic perspective, by focusing on the various economic adjustments both in the real and monetary sectors. It argues that the complex nature of the political and economic reform process has resulted in sub - optimal growth rates. The paper discusses, first, the evolution of the crisis. Then it provides an account of the developments in the real sector and growth in general. The authors then present monetary adjustments, including inflation, exchange rate, and other issues related to the banking and financial sectors. The fourth section discusses the balance of payment trends, by focusing more on the adjustments of exports and imports. This is followed by a discussion on debt issues and fiscal sustainability, while the last part concludes with the prospect of achieving macroeconomic stability.

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Publisher Info
Paper provided by Centre for Strategic and International Studies, Jakarta, Indonesia in its series CSIS Economics Working Paper Series with number WPE074.

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Date of creation: Feb 2004
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Handle: RePEc:sis:wpecon:wpe074

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Related research
Keywords: Indonesia; crisis; macroeconomic adjustment;

Find related papers by JEL classification:
E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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This page was last updated on 2009-11-27.


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