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Money Supply and Interest Rates Following The Financial Sector Reforms : Lessons From Indonesia
Article from Bulletin/Magazine
Jurnal Manajemen Prasetiya Mulya vol. II no. 4 (1995)
lessons from indonesia
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After discussing the selected aspects of general as well as specific monetary's management in indonesia - such as the behaviour of money supply and interest rates including their theoretical frameworks, the structure of financial system, the process of money creation, the function and efficacy of monetary policy, altlernative models of monetary management, various concepts interest rates and their alignments with the international rates, this paper concludes that there are two roles of monetary policy in a more open economy. First, to maintain internal balance by affecting price infaltion. Second, to stabilize external balance by stabilizing the exchange rate and the balance of payment.
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