THE IMPACT OF MONETARY POLICY ON BANK CREDIT DURING ECONOMIC CRISIS: INDONESIA’S EXPERIENCE
| Main Author: | MONGID, ABDUL |
|---|---|
| Format: | Article PeerReviewed Book |
| Bahasa: | eng |
| Terbitan: |
UNIVERSITAS MERDEKA MALANG
, 2008
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| Subjects: | |
| Online Access: |
http://eprints.perbanas.ac.id/2984/1/Peer%20review%20THE%20IMPACT%20OF%20MONETARY%20POLICY%20ON%20BANK%20CREDIT%20DURING%20ECONOMICS%20CRISIS%20INDONESIA%20EXPERIENCE.pdf http://eprints.perbanas.ac.id/2984/ https://jurkubank.files.wordpress.com/2012/01/pdf-januari-2008.pdf |
Daftar Isi:
- The monetary policy mechanism by which monetary policy was transmitted to the real economy had emerged as the pivotal discussion topic recently. This paper tried to discuss the impact of Bank Indonesia’s monetary policy on loan bank. By using simple loan bank framework we concluded that monetary policies were able to influence loan bank. The monetary variables such as discount rate policy, base money and exchange rate policy were very important in determining the banking credit. As the credit was very important to influences the economic activitiy, the result provided evidence that monetary policy was important as a tool to control economic activity via credit channel. The validity of this study challenged the hypotheses that monetary policy was death. However, monetary policy maker should carefully consider the soundness of the banking industry because it was a strategic partner for monetary authority to control the economic activities. Keywords: monetary policy, credit crunch, bank lending