The Impacts of Government Spending and Monetary Policy Rate in Indonesia

This study reviews the impacts of government policies on the economy. The period of analysis starts from early banking sector reform until the current Covid-19 pandemic crisis. We apply Vector Error Correction Model based on the theory of money demand and inflation to analyze the relationships among income, inflation, money balance, government spending, and policy interest rate. The impacts of money balance and policy interest rate on income are as predicted by money demand. Financial sector growth and different expectation on inflation affect the efficacy of monetary policy. On the other hand, government spending might not be fully growth-enhancing. The need emerges to classify and distinguish the classes of government spending which increase growth.

Analysis of Adi Soemarmo Solo Airport Parking Payment System

The writing of the Semester Final Project with the title Analysis of the Parking Payment System for Adi Soemarmo Airport Solo was compiled based on the results of observations at the exit gate of Adi Soemarmo Airport Solo. Transactions on parking payments often cause problems due to several factors, especially the time or process is quite long because sometimes the money given is too large then the cashier takes too long to give change, besides that sometimes passengers do not prepare the money they want to pay in advance and often passengers pay in a situation of insufficient money and this causes queues or jams at the gate exit. The research objective given by the author later is to provide the best solution for airport parking payment systems. In addition to making it easier for passengers, this will greatly facilitate cashiers when carrying out work operations. This payment application system is called u-nik or electronic money. Where u-nik functions to transfer the money balance data contained in u-nik to a computer using a system called AINO. So that payments occur without spending additional cash. With the existence of non-cash payment transactions using the AINO system, it is hoped that it can facilitate and provide speed in making parking payment transactions without the need to carry cash.

MODELING INFLATION IN INDIA: THE ROLE OF MONEY

This paper studies the role of the real money gap — the deviation of real money balance from its long-run equilibrium level — for predicting inflation in India. Using quarterly data on manufacturing inflation from 1982 to 2007, we find that the real money gap is a significant predictor of inflation in India. Our results show that this variable is a better predictor of future inflation at quarterly horizon than the deviation of broad money growth from its target for the whole sample period. We also document a break in the overall predictability of inflation in the last quarter of 1995. We find that, except for the real money gap, the forecasting power of other predictors under study has declined considerably after 1995.