scholarly journals PERHITUNGAN TINGKAT UTANG MAKSIMAL PEMERINTAH SEBAGAI ACUAN BAGI KEBIJAKAN MONETER DI INDONESIA

2013 ◽  
Vol 2 (1) ◽  
pp. 81
Author(s):  
Doni Satria
Keyword(s):  
Fiscal Policy ◽  
Government Debt ◽  
Stabilization Policy ◽  
Government Budget ◽  
Macroeconomic Stabilization ◽  
Indonesian Government ◽  
Dominance Condition ◽  
Fiscal Dominance ◽  
The Government ◽  
Monetary And Fiscal Policy

The interaction of monetary and fiscal policy in an economy played an important role for macroeconomic stabilization policy. Blanchard (1990) has shown the fiscal domination condition in this policy interaction, fiscal dominance condition could be caused by the accumulation of government debt. This research analyzed the maximum debt that can be accumulated by the government, and still be sustained and could not drag the economy to the fiscal dominance condition. Using the Mendoza and Oviedo (2004) model, we find the maximum accumulated government debt is 45.2 percent of Indonesia GDP. This result is based on the 20 percent of expenditure adjustment of Indonesian government budget

Interpreting the Reagan Deficits

2017 ◽  
Author(s):  
Thomas J. Sargent
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Reagan Administration ◽  
Federal Budget ◽  
Ronald Reagan ◽  
Government Budget ◽  
Government Deficits ◽  
Tax Smoothing ◽  
The Government ◽  
Monetary And Fiscal Policy

This chapter examines the large net-of-interest deficits in the U.S. federal budget that have marked the administration of Ronald Reagan. It explains the fiscal and monetary actions observed during the Reagan administration as reflecting the optimal decisions of government policymakers. The discussion is based on an equation whose validity is granted by all competing theories of macroeconomics: the intertemporal government budget constraint. The chapter first considers the government budget balance and the optimal tax smoothing model of Robert Barro before analyzing monetary and fiscal policy during the Reagan years: a string of large annual net-of-interest government deficits accompanied by a monetary policy stance that has been tight, especially before February 1985, and even more so before August 1982. Indicators of tight monetary policy are high real interest rates on government debt and pretax yields that exceed the rate of economic growth.

Market Challenges, Risks, and Policy

2018 ◽  
pp. 163-188
Author(s):  
Adam Christopher Wood
Keyword(s):  
Economic Policy ◽  
Fiscal Policy ◽  
Financial Stability ◽  
International Perspective ◽  
Policy Decisions ◽  
Wall Street ◽  
Current State ◽  
The Government ◽  
Monetary And Fiscal Policy

This chapter first examines what caused the need to regain global stability after the financial crisis. The author provides a brief refresher of how the market crash in 2008, and subsequent Great Recession, was initially fueled while honing in on the allocation of “the fuel” coupled with the repeals of bicentennial-long legislation and the associated dangers of these economic policy changes. Notations from Nobel laureates and interagency economists from the IMF and World Bank aid in identifying the consequences of these policy decisions while simultaneously illustrating the enhanced risk within a variety of markets. Next, the author discusses the current state and relative stability of the financial markets, economic policy, and the risks associated therein. Lastly, this chapter provides recommendations for the future of monetary and fiscal policy, globalization, and what the government (and Wall Street) must consider should they seek to attain long-term financial stability from an international perspective. Monetary and fiscal policy decisions implemented and in-progress by the Federal Reserve are fastidiously examined throughout this chapter.

scholarly journals E-commerce Taxation and Fiscal Policy Perspective: The Case of Indonesia

2018 ◽  
Vol 7 (3) ◽  
pp. 1-9
Author(s):  
Sigit Setiawan
Keyword(s):  
Fiscal Policy ◽  
Income Tax ◽  
Tax Revenue ◽  
Policy Perspective ◽  
Indonesian Government ◽  
The Third ◽  
Total Potential ◽  
Analytical Research ◽  
The Government ◽  
In The Beginning

The Indonesian government is now seriously exploring in depth the proposed tax imposition for e-commerce. In this context, this paper will discuss the following issues: the first, if Indonesian government should impose the tax on e-commerce; the second, how much the potential tax revenue from e-commerce is; and the third, how Indonesian fiscal policy perspective views e-commerce taxation. The study in this paper adopts a descriptive analytical research method. The study concludes several points. Indonesia should tax its e-commerce. The total potential tax revenue on e-commerce from VAT and income tax in 2018 ranges from almost Rp11.75 trillion to Rp16.64 trillion, with VAT dominates the contribution up to more than 90% of the total tax revenue. By not levying the tax in the year means Indonesian government will lose a partial or the most of tax revenue. The revenue loss is potentially getting bigger in the coming years if the government still fails to collect the tax. E-commerce taxation should not be strictly enforced in the beginning, yet more is emphasized on socialization and education actions. It is also intended to help the online platform to be compliant. Tax policy in e-commerce can be used for the purpose of regulating the economy, such as to control excessive online import purchasing.

Monetary and Fiscal Policy Coordination During the Fiscal Dominance Regimes

2020 ◽  
Author(s):  
Vighneswara Swamy
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Interaction Model ◽  
Policy Coordination ◽  
Jel Classification ◽  
Bond Yields ◽  
Vector Error Correction ◽  
Policy Effect ◽  
Fiscal Dominance ◽  
Monetary And Fiscal Policy

Abstract This study evaluates the conduct of monetary and fiscal policies for the post-liberalization period 2005: Q1–2017: Q1 in India and explores the need for coordination. As quantifying the extent of coordination, mostly depends on the appropriate policy mix that responds effectively to different shocks, this study empirically examines the interaction between monetary and fiscal policy by using Vector Auto Regressions (VAR) and a Vector Error Correction Model (VECM). Further, this study discusses the Stackelberg interaction model with government leadership to know the strategic interaction between monetary and fiscal policy. The estimates show that an unexpected increase in the monetary policy effect: (i) has a contractionary impact on the economic growth; (ii) leads to a gradual decline in the inflation; (iii) tightens the liquidity conditions; and (iv) rise in the bond yields. On the other hand, an unexpected increase in the fiscal policy effect: (i) has a positive effect on GDP growth; (ii) has an initial decline, but a gradual rise in the inflation levels; and (iii) leads to falling bond yields. Monetary policy is found to be more responsive to fiscal policy effects. The results imply that there is a greater need for effective coordination between monetary and fiscal policy as a sufficient condition to achieve economic stability.JEL Classification: C32; E31; E52; E62; E63

Commentary: the Policy Framework

2008 ◽  
Vol 206 ◽  
pp. 68-73
Author(s):  
Martin Weale
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Policy Framework ◽  
The Past ◽  
Policy Goals ◽  
Fiscal Balance ◽  
The Government ◽  
Monetary And Fiscal Policy

The Government, when it came to power in 1997, adopted a monetary and fiscal policy framework which was intended to deliver low and stable inflation, high and stable economic growth and fiscal balance as a basis for fairness between generations. It is abundantly clear from the chaos of the past few weeks that the policy has failed. Given that the policy goals are unlikely to be criticised, the question addressed here is which parts of the policy need replacing or augmenting.

scholarly journals Optimal Time-Consistent Government Debt Maturity*

2016 ◽  
Vol 132 (1) ◽  
pp. 55-102 ◽  
Author(s):  
Davide Debortoli ◽  
Ricardo Nunes ◽  
Pierre Yared
Keyword(s):  
Fiscal Policy ◽  
Government Debt ◽  
Debt Maturity ◽  
Optimal Time ◽  
Ex Post ◽  
Maturity Structure ◽  
The Government ◽  
Lack Of Commitment ◽  
The Cost

Abstract This article develops a model of optimal government debt maturity in which the government cannot issue state-contingent bonds and cannot commit to fiscal policy. If the government can perfectly commit, it fully insulates the economy against government spending shocks by purchasing short-term assets and issuing long-term debt. These positions are quantitatively very large relative to GDP and do not need to be actively managed by the government. Our main result is that these conclusions are not robust to the introduction of lack of commitment. Under lack of commitment, large and tilted debt positions are very expensive to finance ex ante since they exacerbate the problem of lack of commitment ex post. In contrast, a flat maturity structure minimizes the cost of lack of commitment, though it also limits insurance and increases the volatility of fiscal policy distortions. We show that the optimal time-consistent maturity structure is nearly flat because reducing average borrowing costs is quantitatively more important for welfare than reducing fiscal policy volatility. Thus, under lack of commitment, the government actively manages its debt positions and can approximate optimal policy by confining its debt instruments to consols.

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