Global financial crisis started in mid 2008 has reduced global economic growth, and many countries even experienced economic contraction. To deal with economic contraction, various economic policies have been undertaken. Governments have increased fiscal stimulus through increasing expenditure and lowering tax while central banks have cut policy rates substantially. In some countries interest rates even reach zero or close to zero. Similar to many other countries, Indonesia has also undertaken expansionary policies, namely increasing fiscal stimulus and lowering interest rates.This paper examines the impacts of fiscal stimulus and interest rate cut on Indonesian economy using financial computable general equilibrium (FCGE) approach. The estimation results show a number of findings. First, the combination of fiscal expansion and monetary expansion boosts economic growth of Indonesia effectively. Relative to the effectiveness of fiscal expansion without monetary policy expansion or monetary expansion without fiscal expansion, the combination of those two policies is more effective.Second, looking into the components of GDP, the combination of fiscal and monetary expansion has a large multiplier effect, boosting aggregate demand through increasing consumption, investment, government expenditure, exports and imports. Meanwhile, from production side, the combination of fiscal and monetary expansion has positive effects on increasing production of all economic sectors. This effect comes from fiscal incentive (lower tax, lower import duties, etc) in increasing investment. Moreover, the increase in aggregate demand also encourages enterprises to increase their production.Third, institutionally fiscal stimulus and monetary easing has increased income and purchasing power of the poor and rich households in rural and urban area. This increase in turn results in higher all household consumption.JEL Classification: D58, E12, E13, E52, E58, H25, H31, H53, H54Keywords: Fiscal stimulus, monetary easing, financial computable general equilibrium, global financial crisis.

Perdebatan hubungan kebijakan moneter dan fiskal terkait dengan dampak defisit anggaran yang dapat mengganggu inflasi yang merupakan tujuan akhir kebijakan moneter. Sebaliknya, bagi pembuat kebijakan fiskal inflasi yang terlalu ketat dapat berdampak buruk terhadap pertumbuhan ekonomi dan kesempatan kerja yang merupakan tujuan utama dari kebijakan fiskal. Tidak terdapatnya koordinasi diantara kedua kebijakan tersebut dapat berdampak terhadap stabilitas makro dan pertumbuhan ekonomi.Paper ini akan membahas koordinasi kebijakan moneter dan fiskal di Indonesia dari tahun 1969 hingga tahun 2002 dengan menggunakan pendekatan game teori baik berupa cooperative dan noncooperative game. Beberapa kerangka permainan akan disimulasikan dengan model ekonometrik dengan waktu yang kontinu. Pembuat kebijakan moneter dan fiskal diasumsikan mempunyai fungsi tujuan yang berbeda. Dalam mencapai tujuan tersebut, mereka dapat bekerjasama atau tidak. Hasil simulasi menunjukkan bahwa cooperative game memberikan hasil kerugian terkecil (lost function) dibandingkan dengan non-cooperative game.Keywords: Game Theory, Koordinasi, Kebijakan moneter dan fiskalJEL Classification: JEL Classification: C71, C72, E63

Bank runs and banking crisis has been a global cycling phenomenon both in developed and developing countries. This paper provide comprehensive analysis of the bank run determinant in Indonesia, including the economic fundamental, bank performance and self fulfilling prophecy during the period of 1990-2005, using the dynamic panel estimation of Arrelano-Bond. The Result shows that the self-fulfilling prophecy, bank performance (rentability, non performing loan) and macroeconomic condition (output growth, inflation and real interest rate), determine the bank runs in Indonesia. This conclusion is robust both for the sample period of 1997-1998 and 1990-2005. Klasifikasi JEL: C29, C33, G21Keywords: Bank runs, banking crisis, dynamic panel estimation, Arrelano-Bond, Indonesia

There have been long running disputes on the relationship between the degree of openness and economic performance. Based on cross-country analyses, a number of studies found that the relationship between openness and economic performance is quite mixed. Some studies discovered a positive relationship, while others found a negative or simply neutral relationship.Unlike previous studies using cross-sectional data, this study uses structural vector auto-regression (SVAR) to explore the impact of trade openness and financial openness on the Indonesian economy. The findings shows that trade openness and financial openness have negative impacts on output. The results of trade openness are quite robust; since a lack of preparation to anticipate trade openness weakens the competitiveness of Indonesian products relative to foreign products and, finally, lower output. The findings of financial openness are also robust because greater financial openness leaves the Indonesian economy more vulnerable to capital reversal, which endangers economic performance.Keywords: Openness, SVAR, forecast error variance decomposition, impulse response function.JEL Classification: F41, F43

Global financial crisis started in mid 2008 has reduced global economic growth, and many countries even experienced economic contraction. To deal with economic contraction, various economic policies have been undertaken. Governments have increased fiscal stimulus through increasing expenditure and lowering tax while central banks have cut policy rates substantially. In some countries interest rates even reach zero or close to zero. Similar to many other countries, Indonesia has also undertaken expansionary policies, namely increasing fiscal stimulus and lowering interest rates.This paper examines the impacts of fiscal stimulus and interest rate cut on Indonesian economy using financial computable general equilibrium (FCGE) approach. The estimation results show a number of findings. First, the combination of fiscal expansion and monetary expansion boosts economic growth of Indonesia effectively. Relative to the effectiveness of fiscal expansion without monetary policy expansion or monetary expansion without fiscal expansion, the combination of those two policies is more effective.Second, looking into the components of GDP, the combination of fiscal and monetary expansion has a large multiplier effect, boosting aggregate demand through increasing consumption, investment, government expenditure, exports and imports. Meanwhile, from production side, the combination of fiscal and monetary expansion has positive effects on increasing production of all economic sectors. This effect comes from fiscal incentive (lower tax, lower import duties, etc) in increasing investment. Moreover, the increase in aggregate demand also encourages enterprises to increase their production.Third, institutionally fiscal stimulus and monetary easing has increased income and purchasing power of the poor and rich households in rural and urban area. This increase in turn results in higher all household consumption.JEL Classification: D58, E12, E13, E52, E58, H25, H31, H53, H54Keywords: Fiscal stimulus, monetary easing, financial computable general equilibrium, global financial crisis.