Financial Reform and Monetary Control in Indonesia
International Monetary Fund (IMF)
affiliation not provided to SSRN
January 20, 1988
IMF Working Paper No. 88/4
This paper analyzes the evolution and effectiveness of Indonesia`s monetary control system following the financial reforms implemented since 1983. These reforms entailed the abolition of interest rate and credit ceilings, a change in the central bank`s funding role, the introduction of new instruments of indirect monetary control, and measures to develop money markets. The new monetary control system was conducive to a more integrated and more competitive financial system and helped achieve the external balance objective. However, the pace of liberalization of money market rates was constrained by the choice of policy mix to deal with economic shocks.
Number of Pages in PDF File: 36
JEL Classification: 311working papers series
Date posted: February 15, 2006
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