Research Article
Seemingly Unrelated Regression Model of Economic Stability through a Combined Monetary Fiscal Policy in Indonesia
@INPROCEEDINGS{10.4108/eai.4-12-2019.2293789, author={Ade Novalina and Lia Nazliana and Dede Ruslan}, title={Seemingly Unrelated Regression Model of Economic Stability through a Combined Monetary Fiscal Policy in Indonesia}, proceedings={The 3rd International Conference Community Research and Service Engagements, IC2RSE 2019, 4th December 2019, North Sumatra, Indonesia}, publisher={EAI}, proceedings_a={IC2RSE}, year={2020}, month={4}, keywords={government expenditure interest rate inflation money gdp}, doi={10.4108/eai.4-12-2019.2293789} }- Ade Novalina
Lia Nazliana
Dede Ruslan
Year: 2020
Seemingly Unrelated Regression Model of Economic Stability through a Combined Monetary Fiscal Policy in Indonesia
IC2RSE
EAI
DOI: 10.4108/eai.4-12-2019.2293789
Abstract
The research aims to analyze the influence of Seemingly Unrelated Regression (SUR), GOV, SBK to GDP in Indonesia, analyzing the influence in SUR, GOV, INF on GDP in Indonesia, analyzing the influence of the SUR GOV on the INF in Indonesia, analyzing the influence in the SUR SBK, JUB to GDP in Indonesia, analyzing the influence by SUR SBK towards JUB in this study uses quantitative material with the SUR approach. The quantitative material in this study was related to variable data that was observed that was GOV, SBK, INF, JUB and GDP in Indonesia year 2010 S/d 2018. The results of the analysis of SUR from the fiscal side to economic stability showed that Government Expenditure was positively influential but not significant to INF. Government Expenditure was positively influential but not significant to GDP, while inflation hurt economic growth. The interest rate of credit is negative but not significant to economic growth, while the amount of money supply has a positive effect on economic growth. The combined policy shows that Government Expenditure has a positive influence but is not significant to GDP as negative credit interest rate but is not significant to economic growth. It is not significant that the interaction of fiscal and monetary to economic growth shows the combined policy has not been effective in achieving economic stability in Indonesia. Thus, it is input for the Government and BI in coordinating the relevant combined policy to achieve economic stability.