The Government's Role in Maintaining Macroeconomic Stability Amidst the Global Crisis
DOI:
https://doi.org/10.38035/jgia.v3i4.566Keywords:
macroeconomic stability, fiscal policy, monetary policy, global crisis, economic recoveryAbstract
This research examines the government's role in maintaining macroeconomic stability amid global crises, focusing on fiscal and monetary policies implemented during 2020-2024. Global crises triggered by COVID-19 pandemic and geopolitical tensions caused significant shocks to Indonesian economy, reflected in economic growth decline to minus 2.07 percent in 2020. Research method employs descriptive qualitative approach with secondary data analysis from government official publications and international institutions. Results indicate that government intervention through National Economic Recovery program with budget allocation of IDR 699.43 trillion successfully restored economic growth to 3.69 percent in 2021 and reached 5.31 percent in 2023. Bank Indonesia's monetary policy maintaining inflation rate within 2-4 percent range and expansive fiscal policy proved effective in mitigating crisis impacts. Coordination between fiscal and monetary authorities became key success factor for Indonesian macroeconomic stabilization amid global uncertainty.
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