Study of regional dimension and monetary policy impact on economic growth, income inequality and inflation stability in the three economic corridor of indonesia

Putu Juana Wiraatmaja., Wayan Sudirman., Made Kembar Sri Budhi and Sudjana Budhiasa

The slow-down of international financial markets performance have strightly affect to the domestic financial sector growth in Indonesia. To be extended, some macroeconomic targets might be difficult to be realized. On the other hands, Indonesia still faced the problems of financial development process that needs to be more liberalized to adjust with the structure of the international financial system.
This study focuses on the impact of monetary policy on macroeconomic performance in the regional contexs, focuses on regional dimension of monetary policy based on the performance of the financial markets, so that its can be seen the dynamics of the structure of financial markets in different regions as an indicator of the monetary shock variable that transmissed the flexibility of the financial sector to the real sector, including the expansion of investment and export trade area.
This research found that the real GDP growth of the three economic corridor have difference performance innovation compared between Java corridor, non Java with mineral and forest production (Sumatra, Kalimantan, Sulawesi, Papua) and non Java tourism and Food production ( Bali, NTB, NTT).

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