Monetary Policy Trumps Fiscal Policy in Boosting Indonesia's GDP!
The study looked at how monetary policy and fiscal policy affect Indonesia's economy. They used data from 1990 to 2020 and a quantitative model to analyze the impact. The results showed that monetary policy, like controlling the amount of money in circulation, is more effective in boosting the country's gross domestic product compared to fiscal policy, like government spending. This supports the idea that in a small open economy with a floating exchange rate, using monetary policy is more effective than using fiscal policy.