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Central Bank Policy Mix: Key Concepts and Indonesia’s Experience

In: Central Bank Policy Mix: Issues, Challenges, and Policy Responses

Author

Listed:
  • Perry Warjiyo

    (Bank Indonesia)

Abstract

Central banks’ mandates cannot merely be to achieve price stability; they should be enlarged to include promoting financial system stability. To achieve this dual mandate, central banks are advised to formulate and implement a policy mixPolicy Mix of interest rate policy, combined with exchange rate policyExchange rate policy, capital flow managementCapital flow management as well as macro prudential policy. This policy mixPolicy Mix should be further complemented with strong coordination and communication.

Suggested Citation

  • Perry Warjiyo, 2022. "Central Bank Policy Mix: Key Concepts and Indonesia’s Experience," Springer Books, in: Perry Warjiyo & Solikin M. Juhro (ed.), Central Bank Policy Mix: Issues, Challenges, and Policy Responses, chapter 0, pages 3-16, Springer.
  • Handle: RePEc:spr:sprchp:978-981-16-6827-2_1
    DOI: 10.1007/978-981-16-6827-2_1
    as

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