Transcript KEBIJAKAN FISKAL, MONETER INFLASI DAN LAPANGAN KERJA HUBUNGAN ANTAR VARIABEL PHILIP CURVE (1958) • PENDAPATAN PEKERJA – INFLASI KEYNES (1936) • GOVERNMENT INTERVENTION TO UNEMPLOYMENT.

KEBIJAKAN FISKAL, MONETER
INFLASI DAN LAPANGAN KERJA
HUBUNGAN ANTAR VARIABEL
PHILIP CURVE (1958)
• PENDAPATAN PEKERJA – INFLASI
KEYNES (1936)
• GOVERNMENT INTERVENTION TO UNEMPLOYMENT RATE
PHILIP CURVE (1958)
Market determine labor wages
• unemployment was high, wages increased slowly;
• unemployment was low, wages rose rapidly
Trade-off:
• unemployment falls, workers push for higher wages.
• Firms pass these higher wage costs on to consumers  higher prices
and an inflation
KEYNES (1936)
• INFLASI – RESESI APBN
• PENDAPATAN : HUTANG
• PENGELUARAN : PROGRAM STIMULUS EKONOMI  KETERSEDIAAN
LAPANGAN PEKERJAAN
• SUSTAIN FULL EMPLOYMENT AND EMPOWER WORKERS TO PUSH
FOR HIGHER WAGES
MAIN POLICIES
• A reduction in interest rates (monetary policy),
• A reduction in tax rate, and
• Government investment in infrastructure (fiscal policy).
A REDUCTION IN INTEREST RATES
(MONETARY POLICY)
• INITIATED BY REDUCING INTEREST RATE AT CENTRAL BANK
• FOLLOWED BY REDUCING INTEREST RATE IN COMMERCIAL BANK TO
AFFECT CUSTOMERS BORROWING (INVESTMENT)
A REDUCTION IN TAX RATES (FISCAL POLICY)
• INITIATED BY REDUCING PERSONAL INCOME TAX RATE
• FOLLOWED BY INCREASING OF REAL PURCHASING POWER AFTER TAX
GOVERNMENT INVESTMENT IN
INFRASTRUCTURE (FISCAL POLICY)
• Investment by government in infrastructure injects income into the
economy by creating business opportunity, employment and demand.
• Employment opportunity is the key goal
• Effectiveness of resources use is the tailored to national employment
creation needed.
• Big government infrastructure need big capital from loan fiscal
deficits
CURRENT ADDITIONAL INDONESIA’S FISCAL
POLICY
• REDUCING STATE-OWNED BANK DEPOSIT TO BUDGET
• FOLLOWED BY INCREASING CAPITAL TO INVEST INFRASTRUCTURE
BASIC CONCEPTS
EMPLOYMENT WAGES
• Nominal wages are set in negotiations between employers and
workers
• nominal wage cuts would be difficult to put into effect because of
laws and wage contracts
• nominal wage reductions ONLY can take place whenever labor see
other wages falling and a general fall of prices
KEYNES KEY IDEAS
Fiscal stimulus:
• raises the market for business output,
• raising cash flow and profitability,
• spurring business optimism.
This accelerator effects meant that government and business =
complements.
KEYNES KEY IDEAS
• As the stimulus occurs, gross domestic product rises, raising the amount of
saving, helping to finance the increase in fixed investment.
• Government outlays need not always be wasteful: government investment
in public goods that will not be provided by profit-seekers :
1. basic research,
2. public health,
3. education, and
4. infrastructure
• will encourage the private sector's growth and could help the long-term
growth of potential output.
KEYNES KEY IDEAS
• In Keynes's theory, there must be significant slack in the labour
market before fiscal expansion is justified.
• Keynesianism does not consist solely of deficit spending.
• Keynesianism recommends counter-cyclical policies:
1. Raising taxes to cool the economy and to prevent inflation when
there is abundant demand-side growth, and
2. Engaging in deficit spending on labour-intensive infrastructure
projects to stimulate employment and stabilize wages during
economic downturns.
KEYNES KEY IDEAS
• Keynesian economists believe that adding to profits and incomes
during boom cycles through tax cuts, and removing income and
profits from the economy through cuts in spending during downturns,
tends to exacerbate the negative effects of the business cycle.
• This effect is especially pronounced when the government controls a
large fraction of the economy, as increased tax revenue may aid
investment in state enterprises in downturns, and decreased state
revenue and investment harm those enterprises.