Compared to other Asia's most dynamic economies, currently Indonesia is still in the earlier stage of demographic transition, with 7.9 percent of the population aged 60 years or older in 2010. Nevertheless, demographic transition is considered as a quite important issue, not only its implication...

The global financial crisis of 2008-09 (GFC) and the deep accompanying recession created an overarching structural condition of a global and domestic demand shortage. Since then, from a broader policy perspective, there has been a growing call for a revival of the subdued role of the central...

Central Bank Policy Mix: Key Concepts and Indonesia's Experience -- Central Bank Policy Mix: Issues, Challenges, and Policy Responses -- Monetary Policy -- Exchange Rate Policy and Regimes -- Managing Capital Flows -- Financial Stability and Systemic Risk -- Macroprudential Policies and...

As the Indonesian economy is becoming progressively more integrated with the global economy, the impact of global economic shocks on the domestic economy is becoming more pronounced. Capital inflows, which trigger excessive liquidity and exacerbate the risk of a sudden reversal, pose a serious...

The challenges encountered after the financial crises of 1997–98 and 2008–09 have revealed some valuable lessons with regard to monetary policy. In a small open economy, such as that of Indonesia, the multiple challenges facing monetary policy as a result of capital flow dynamics, amid...