Impact of Monetary Policy on Indonesia's Economic Growth, Case Studies before and during the Covid-19 Pandemic

Abstract

One of the main drivers of a country's economic growth is monetary policy. The purpose of this research is to see if the monetary policies implemented by the central bank during the covid 19 pandemic had an impact on Indonesia's growth, as measured by macroeconomic factors. Based on the processing results, the independent variable used influences economic growth by using time series and dummy data for the period before and after the Covid-19 pandemic during the 2015-2020 period. Monetary policy, interest rate, inflation, exchange rates, and the Covid-19 pandemic dummy are all factors that influence economic growth. Interest rates, on the other hand, have no effect. Due to the significant risk of economic uncertainty, it is clear that the strategy of decreasing interest rates, which is meant to encourage investment, has no effect on the economy during the pandemic. The implication of this study shows that the fiscal policy carried out by the government is appropriate to increase people's purchasing power.

The The Influence of Fiscal Policy, Monetary Policy and International Trade on Economic Growth in Indonesia (Literature Reviews)

“…Monetary policy influences economic growth in Indonesia, where the monetary policy dimensions or indicators of money supply, exchange rate, and inflation affect the dimensions or indicators of economic growth in Indonesia, namely GDP (Hariyanti & Soeharjoto, 2022).…”