What would be the effect of the monetary policy

Reference no: EM133504591

Case: Bank Indonesia (Indonesia's central bank) has injected around Rp 694.87 trillion of additional liquidity into the banking system (through quantitative easing), primarily in the form of lower reserve requirements totalling Rp155 trillion and monetary expansion totalling Rp 524.07 trillion to support the country's economic recovery which has been hard hit by the coronavirus pandemic.

Question 1: Using relevant models, illustrate the effect of the monetary policy on:

Level of money supply, quantity of loanable funds, and interest rate.
Level of investment and output.

Question 2: What would be the effect of the monetary policy on Indonesian Rupiah (IDR) exchange rate? Explain.

Question 3: What are the possible disadvantages of this monetary policy? Explain

Reference no: EM133504591

Questions Cloud

What effective intervention strategies were used and measure : What effective intervention strategies were used and measured? What impact did have the infectious disease outbreak have on any health policies?

How do you tax the clones in the clouds : provide a short summary of this article: Exploring Virtual Currencies: How Do You Tax the Clones in the Clouds?

Do you feel this is the case right now with monetary policy : The problem with monetary policy is that it can become ineffective when interest rates are very low. Do you feel this is the case right now with monetary policy

How might the method be useful in your future career : Examine the major research methods that will be covered in the course. How might this method be useful in your future career?

What would be the effect of the monetary policy : What would be the effect of the monetary policy on Indonesian Rupiah (IDR) exchange rate and What are the possible disadvantages of this monetary policy

What are the key facts and potential implication or impacts : What are the key facts and potential implication or impacts to stakeholders when ethical or legals issues arise?

Explain the use of hospital state and national data comparis : Explain the use of hospital, state and national data comparison requirements in Magnet redesignation and quality improvement.

Draw the labor supply curve : Draw the labor supply curve for when (a) substitution effect dominates (b) income effect dominates (Make sure you label the axes)

Does covid-19 impact amir contractual obligations : Are the parties involved in this case required to perform their contractual duties in good faith? If so, what does good faith in contracts mean?

User Account

All Pages