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DAMPAK PEMBIAYAAN DEFISIT ANGGARAN DENGAN UTANG LUAR NEGERI TERHADAP INFLASI DAN PERTUMBUHAN EKONOMI: Studi Kasus Indonesia Tahun 1970-2003

Jurnal Ekonomi dan Pembangunan Indonesia

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Title DAMPAK PEMBIAYAAN DEFISIT ANGGARAN DENGAN UTANG LUAR NEGERI TERHADAP INFLASI DAN PERTUMBUHAN EKONOMI: Studi Kasus Indonesia Tahun 1970-2003
 
Creator Waluyo, Joko
 
Subject Budget Deficit, Foreign Debt, inflation, Economic Growth
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E00, H62,H63
 
Description The main purpose of this study is to find the effect of budget deficit with foreign loans as source of funding on inflation and economic growth. This study focuses on transmission mechanism of budget deficit funding effects on inflation and economic growth. We use a specific simultaneous macroeconomic model which includes 17 behavioral equations and 18 identity equations with 6 blocks in this study, Two Stage Least Square (TSLS) method is employed to estimate the behavioral equations in the model. This study use Indonesia secondary economic data from 1970 to 2003. Econometric tests are performed to produce BLUE estimator. This study also use stochastic simulation with 10000 replications to simulate policy.The results show that using foreign loan to fund budget deficit increases both economic growth and inflation. This result is also supported by the simulation results which show that increase in the proceeds of new foreign loan increases reserves which in turn increase primary money/money supply/monetary base. Interaction of monetary base with money multiplier then increases price level. increase in capital in flow from increase in foreign loan increases government spending which also increases government spending increases in the government spending then add to government capital stock so that economic growth also increases.
 
Publisher Department of Economics-FEB UI
 
Contributor —
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
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Format application/pdf
 
Identifier http://jepi.fe.ui.ac.id/index.php/JEPI/article/view/148
10.21002/jepi.v7i1.148
 
Source Jurnal Ekonomi dan Pembangunan Indonesia; Vol 7, No 1 (2006): Juli; 81-103
2406-9280
1411-5212
 
Language eng
 
Relation http://jepi.fe.ui.ac.id/index.php/JEPI/article/view/148/62
 
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