| dc.description.abstract | This research is based on the magnitude of the influence of monetary and fiscal aspects,
namely the money supply, exchange rates, government spending, and taxes on the
business cycle in Indonesia. This study aims to examine the effect of the connection
between the monetary and fiscal policy mix on the business cycle in Indonesia. For
analysis purposes, secondary data was used in the form of time-series data from 1970–
2017. The method used is the Vector Error Correction Model (VECM) to see long-term
and short-term relationships. In the estimation results, it is found that in the long-term
period, the monetary variables (money supply and exchange rates) and fiscal variables
(government expenditures and taxes) have a significant positive effect on the business
cycle in Indonesia.In contrast, the monetary variables that have a significant effect in
the short-term period are only the amount variable money supply. There are no fiscal
variables that have a significant effect on the business cycle in Indonesia. The
interaction of monetary and fiscal policies is still effectively implemented in Indonesia. | en_US |
