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Monetary policy transmission mechanism channels to poverty alleviation : establishing the pro-poor monetary policy framework
Poverty is indeed a long-lasting multidimensional problem in this world. Even developed countries with high income per capita could not avoid the phenomena of poverty. Policies has been made to alleviate poverty, but unfortunately there are almost no monetary policy which been made to support poverty alleviation. Romer (1999) stated that monetary policy is a modern tool which can be directed to help other policies to alleviate poverty. Monetary policy indeed can not affect the poor directly, but it can obviously create a conducive climate which is not harmful, yet supportive for the poor. This research goal is to establish such a framework for monetary policy which can support the poverty alleviation efforts. Based on the numerical analysis on the estimation result, the growth oriented policy is still good for poverty alleviation in ceteris paribus condition. Because, even the increase of growth will increase inflation eventually, but the impact of inflation on the poverty is less than the growth impact. Even though the simulation shows growth oriented policy is good, but the growth should not be excessive to support poverty alleviation since it has the potentials of continuing the increase on inflation. Since the poor does not has enough ability to adjust their income easily, the growth should be controlled in stable condition, rather than the rapid one. The framework consists of four channels, which are growth, inflation, unemployment and financial development channels. Based on the analysis on the estimation, the required framework for monetary policy to support poverty alleviation consists of: (1) Increase economic growth in caution with inflationary impact, (2) Stable inflation rate to support economic growth, (3) Promote lending to reduce unemployment and (4) Restructuring the financial development. It is true that alleviating poverty is not the work for the central banks. But, to alleviate poverty, conducive macroeconomic condition is required. This can be achieved if the one who responsible for monetary authority, which is the central banks, support the efforts by creating conducive climate for poverty alleviation.Ada tabel
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| 6787 | PSB lt.2 - Karya Akhir | 1 |
| Penerbit | Depok: Departemen Ilmu Ekonomi Fakultas Ekonomi Universitas Indonesia 2010 |
|---|---|
| Edisi | - |
| Subjek | Macroeconomics Monetary policy Poverty Economic groth Poverty alleviation |
| ISBN/ISSN | - |
| Klasifikasi | - |
| Deskripsi Fisik | xiii, 89 p. : chart, il. ; 30 cm |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |