Appropriate Macroeconomic Management in Indonesia's Open Economy

摘要

The main objective of the paper is to provide an interpretation of the recent macroeconomic developments in Indonesia, using a simple analytical framework, and draw implications for policy. The paper is not concerned with all the broad development issues that Indonesia faces during the 1990s. Rather, it is focused specifically on selected aspects of macroeconomic management--the role of monetary, fiscal and exchange rate policies in ensuring the consistency of growth with macroeconomic stability. Indonesia's growth targets and associated sectoral/institutional policies are taken as given, and the analysis of the paper seeks to highlight the appropriate conduct of macroeconomic policies to reconcile growth with stability.