KEBIJAKAN FISKAL DAN MONETER

Summary

This educational video explores fiscal and monetary policies, delving into their definitions, goals, instruments, and differences. It explains fiscal policy as the government's method for managing national revenue and expenditure to stabilize the economy, and monetary policy as the central bank's approach to managing money circulation to control inflation and stimulate growth. The video also highlights the application of these policies in Indonesia, focusing on the expansive fiscal and monetary measures taken during the COVID-19 pandemic to counter economic decline. Key instruments like government spending, taxes, interest rates, and reserve requirements are also covered.

Takeaways

• 😀 Fiscal policy involves government actions related to national income, taxation, and public spending aimed at stabilizing the economy.
• 😀 The primary goal of fiscal policy is to increase national income, reduce unemployment, control inflation, and maintain economic stability.
• 😀 Fiscal policy instruments include government spending and national revenue, with four key types of spending: routine, development, subsidies, and incentives.
• 😀 National revenue sources include taxes, customs duties, non-tax revenues, and loans or grants.
• 😀 Monetary policy focuses on managing the money supply and interest rates to control inflation and stabilize the currency, executed by the central bank.
• 😀 The central bank's tools for monetary policy include the discount rate, open market operations, and reserve requirements for commercial banks.
• 😀 Expansionary fiscal and monetary policies aim to stimulate the economy by increasing government spending and reducing taxes, or lowering interest rates.
• 😀 Expansionary policies are used during periods of economic downturn, such as the COVID-19 pandemic, to boost public spending and consumer purchasing power.
• 😀 Contractionary fiscal and monetary policies are implemented to control high inflation by reducing government spending, raising taxes, or increasing interest rates.
• 😀 In Indonesia, both fiscal and monetary expansionary policies were implemented during the COVID-19 pandemic, with increased government spending and lower interest rates to boost the economy.

Q & A

What is fiscal policy and how does it impact a country's economy?

Fiscal policy refers to government strategies that involve managing a country's taxes, spending, and borrowing to influence the economy. It impacts economic growth, inflation, unemployment, and overall economic stability by regulating government spending and national revenue.

What are the main goals of fiscal policy?

The main goals of fiscal policy are to stimulate economic growth, reduce unemployment, control inflation, and ensure overall economic stability.

What are the two main instruments used in fiscal policy?

The two main instruments of fiscal policy are government expenditure (including routine spending, infrastructure development, subsidies, and incentives) and government revenue (mainly taxes, customs duties, and loans).

Who is responsible for implementing fiscal policy in Indonesia?

In Indonesia, fiscal policy is implemented by the government, led by the President and carried out operationally by the Ministry of Finance and other relevant ministries.

How is monetary policy different from fiscal policy?

Monetary policy is managed by a country's central bank (Bank Indonesia in Indonesia) and focuses on controlling the money supply, interest rates, and currency stability. In contrast, fiscal policy is managed by the government and involves adjusting taxation and government spending.

What is the role of Bank Indonesia in monetary policy?

Bank Indonesia is responsible for implementing monetary policy in Indonesia. This includes controlling the money supply, regulating interest rates, and managing the country's currency to maintain economic stability.

What are the main tools used in monetary policy?

The three main tools of monetary policy are the discount rate (interest rate set by the central bank), open market operations (buying or selling government securities), and reserve requirements (minimum reserves that banks must hold).

How does an expansionary fiscal policy work during an economic downturn?

During an economic downturn, an expansionary fiscal policy increases government spending and reduces taxes. This aims to boost demand, increase purchasing power, and stimulate economic activity, thereby helping to reduce the negative impacts of a recession.

What is the purpose of an expansionary monetary policy, and how is it implemented?

An expansionary monetary policy aims to increase economic activity by lowering interest rates and increasing the money supply. It encourages borrowing and spending, thus stimulating growth. It can be implemented by reducing the discount rate and reserve requirements, as well as purchasing government securities.

How did Indonesia implement fiscal and monetary policies during the COVID-19 pandemic?

During the COVID-19 pandemic, Indonesia implemented expansionary fiscal policies by increasing government spending and providing subsidies to support the economy. Monetary policy was also made expansionary by lowering interest rates, making borrowing easier and stimulating economic activity.

What are contractionary policies, and when are they used?

Contractionary policies are used to combat high inflation or an overheated economy. These policies involve reducing government spending, increasing taxes, and raising interest rates. They are typically implemented when inflation is high, and the government needs to reduce the money supply and curb excessive spending.

What are the differences in instruments between fiscal and monetary policy?

The main instruments of fiscal policy are government spending and taxation. In contrast, the main instruments of monetary policy include interest rates, open market operations, and reserve requirements for banks.