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Analysis of Fiscal and Monetary Policy Effectiveness with the IS-LM Approach: Case Studies in 2001-2005

16 Pages Posted: 27 Aug 2011  

Samuel David Lee

Gunadarma University - Accounting Department

Date Written: April 13, 2011

Abstract

The economic crisis gave a lesson to the nation of Indonesia that some macro economic indicators are not yet a satisfactory assurance that Indonesia's strong economic conditions. As the economy is felt too slow than it should be so with fiscal and monetary policy proper is expected to stimulate the economy grow faster. results of research in Indonesia during the period 2001 to 2005 shows monetary policy is more effective than fiscal policy in influencing the increase in National Income. While interest rates continue to be maintained constantly at one digit.

Keywords: IS, LM, Fiscal, Monetary

JEL Classification: A11, B41, E62, E63

Suggested Citation

Lee, Samuel David, Analysis of Fiscal and Monetary Policy Effectiveness with the IS-LM Approach: Case Studies in 2001-2005 (April 13, 2011). Available at SSRN: https://ssrn.com/abstract=1917949 or http://dx.doi.org/10.2139/ssrn.1917949

Samuel David Lee (Contact Author)

Gunadarma University - Accounting Department ( email )

Margonda Raya 100
Pondokcina, Depok
Jakarta, West Java 62-16424
Indonesia

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