Does Fiscal Policy Matter? A Study on Economic Crises in Indonesia
Fiscal policy is one of the instruments used by the government in dealing with economic crises. The recent COVID-19 pandemic crisis has different characteristics from the previous ones in Indonesia. Hence, the fiscal policy needed is also different. Therefore, this study aims to know the role of fi...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universitas Negeri Semarang
2023-03-01
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| Series: | JEJAK: Jurnal Ekonomi dan Kebijakan |
| Subjects: | |
| Online Access: | https://journal.unnes.ac.id/nju/index.php/jejak/article/view/37532 |
| _version_ | 1797789282971156480 |
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| author | Sri Rejeki Prasasti Mahjus Ekananda |
| author_facet | Sri Rejeki Prasasti Mahjus Ekananda |
| author_sort | Sri Rejeki Prasasti |
| collection | DOAJ |
| description | Fiscal policy is one of the instruments used by the government in dealing with economic crises. The recent COVID-19 pandemic crisis has different characteristics from the previous ones in Indonesia. Hence, the fiscal policy needed is also different. Therefore, this study aims to know the role of fiscal policy shocks in affecting some macroeconomic indicators, including GDP, inflation, and interest rate, in Indonesia and investigate its differences within two periods: Period I (1993Q1-2018Q4), which includes the Asian Financial Crisis and the Global Financial Crisis, and Period II (2019M1-2021M12), which include the COVID-19 Pandemic crisis. This study employs the Structural Vector Autoregression (SVAR) model, using institutional information of the government budget system as restrictions. This study concludes that: 1) shocks in fiscal policies significantly affect GDP in both periods; 2) the dynamic movement of GDP is more influenced by government spending than government revenue; 3) fiscal policy, especially revenue, has greater influences on inflation during the COVID-19 Pandemic; 4) fiscal policy has a minor role in affecting the interest rate. |
| first_indexed | 2024-03-13T01:47:30Z |
| format | Article |
| id | doaj.art-5c0d5b02438147128d5ef000bea20c88 |
| institution | Directory Open Access Journal |
| issn | 2460-5123 |
| language | English |
| last_indexed | 2024-03-13T01:47:30Z |
| publishDate | 2023-03-01 |
| publisher | Universitas Negeri Semarang |
| record_format | Article |
| series | JEJAK: Jurnal Ekonomi dan Kebijakan |
| spelling | doaj.art-5c0d5b02438147128d5ef000bea20c882023-07-03T03:03:21ZengUniversitas Negeri SemarangJEJAK: Jurnal Ekonomi dan Kebijakan2460-51232023-03-0116110.15294/jejak.v16i1.3753213684Does Fiscal Policy Matter? A Study on Economic Crises in IndonesiaSri Rejeki Prasasti0Mahjus Ekananda1Universitas IndonesiaUniversitas IndonesiaFiscal policy is one of the instruments used by the government in dealing with economic crises. The recent COVID-19 pandemic crisis has different characteristics from the previous ones in Indonesia. Hence, the fiscal policy needed is also different. Therefore, this study aims to know the role of fiscal policy shocks in affecting some macroeconomic indicators, including GDP, inflation, and interest rate, in Indonesia and investigate its differences within two periods: Period I (1993Q1-2018Q4), which includes the Asian Financial Crisis and the Global Financial Crisis, and Period II (2019M1-2021M12), which include the COVID-19 Pandemic crisis. This study employs the Structural Vector Autoregression (SVAR) model, using institutional information of the government budget system as restrictions. This study concludes that: 1) shocks in fiscal policies significantly affect GDP in both periods; 2) the dynamic movement of GDP is more influenced by government spending than government revenue; 3) fiscal policy, especially revenue, has greater influences on inflation during the COVID-19 Pandemic; 4) fiscal policy has a minor role in affecting the interest rate.https://journal.unnes.ac.id/nju/index.php/jejak/article/view/37532fiscal policy, economic crises, structural vector autoregression |
| spellingShingle | Sri Rejeki Prasasti Mahjus Ekananda Does Fiscal Policy Matter? A Study on Economic Crises in Indonesia JEJAK: Jurnal Ekonomi dan Kebijakan fiscal policy, economic crises, structural vector autoregression |
| title | Does Fiscal Policy Matter? A Study on Economic Crises in Indonesia |
| title_full | Does Fiscal Policy Matter? A Study on Economic Crises in Indonesia |
| title_fullStr | Does Fiscal Policy Matter? A Study on Economic Crises in Indonesia |
| title_full_unstemmed | Does Fiscal Policy Matter? A Study on Economic Crises in Indonesia |
| title_short | Does Fiscal Policy Matter? A Study on Economic Crises in Indonesia |
| title_sort | does fiscal policy matter a study on economic crises in indonesia |
| topic | fiscal policy, economic crises, structural vector autoregression |
| url | https://journal.unnes.ac.id/nju/index.php/jejak/article/view/37532 |
| work_keys_str_mv | AT srirejekiprasasti doesfiscalpolicymatterastudyoneconomiccrisesinindonesia AT mahjusekananda doesfiscalpolicymatterastudyoneconomiccrisesinindonesia |