suara dendi
ikut arahan에 의해This research paper by Dendi Hidayatuloh explains how monetary policy affects the economy through two important channels: the Financial Accelerator and the Risk-Taking Channel. It compares developed countries like Europe and the United States with evidence from Indonesia. Monetary policy is used by central banks to keep prices stable, support economic growth, and maintain stable exchange rates. The transmission mechanism shows how changes in interest rates influence credit, asset prices, and people’s expectations. In Europe, after the euro was introduced in 1999, the ECB used interest rates and forward guidance, but the effects were different across countries. In the US, the Fed Funds Rate strongly affects output and inflation, and small banks are more sensitive. The Financial Accelerator theory explains how higher interest rates cause asset prices and collateral to fall, making borrowing more expensive and slowing the economy even more through a feedback loop. The Risk-Taking Channel happens when low interest rates for a long time encourage banks, especially small and undercapitalized ones, to take more risks by lending to riskier borrowers. Studies in Spain, the US, and Indonesia, including the 2025 ECB easing and Indonesia’s Rp200 trillion liquidity injection, support these findings. The paper concludes that both channels are very relevant, interest rate-based policies like the Taylor Rule work better, and Indonesia needs stronger coordination between fiscal and monetary policy. Recommendations include using counter-cyclical capital buffers, better supervision of small banks, exploring a hybrid policy rule, and monitoring fintech risks.
