Exploring The Interaction Between Fiscal And Monetary Policy: Insights From Public Economics Literature Hikma1, Pricylia Chintya Dewi Buntuang2, Nira Ramadhani M3, Adinda Prameswari Putry4
Student of Public Administration Study Program, Faculty of Social and Political Sciences, Tadulako University
Abstract
This article examines the interaction of fiscal and monetary policies in Indonesia, focusing on their impact on economic stability, inflation, and unemployment. Through a literature review, this research shows that expansionary fiscal policies, such as increased government spending and tax incentives, are effective in boosting economic growth and lowering unemployment. However, the lack of coordination between policies poses a challenge in maintaining price stability. In conclusion, strong synergy between fiscal and monetary policies as well as effective coordination between the government and monetary authorities are needed to achieve sustainable economic stability in Indonesia.
Keywords: Fiscal Policy, Monetary Policy, Macroeconomics, Central Bank, Economic Growth, Inflation
