Monetary policy in Indonesia boosts bank credit during economic crisis.
The article discusses how Indonesia's monetary policy affects bank loans during economic crises. The researchers found that policies like discount rates and exchange rates play a big role in determining bank credit. This credit is crucial for economic activity, showing that monetary policy is important for controlling the economy through bank lending. The study challenges the idea that monetary policy is ineffective, but also emphasizes the need for a strong banking industry to support these policies.