O impacto do Quantitative Easing do Federal Reserve na Indonésia

Abstract

The subprime crisis, which broke out in 2008, led to the use of conventional monetary policies and unconventional monetary policies. The first is known as the interest policy, that is, the use of the interest rate to stimulate the economy, while unconventional measures are usually known as credit policies and asset purchases by the Central Bank policies. Hence, the crisis that threatened the international financial system, led to the use of other mechanisms besides the interest rate, which caused a strong expansion of the Fed's balance sheet and made unconventional policies become one of its main monetary policy instruments, through its famous Quantitative Easing policy (QE). The adoption of the QE program has had a huge impact on international markets, especially for emerging countries in which Indonesia is a part of. QE has resulted in a huge amount of capital inflow into the market, transforming emerging countries with high growth prospects into more attractive environments. Therefore, this analysis sought to understand the economic effects of quantitative easing monetary policy, triggered by the largest central banks, and the impacts that these measures had in the Indonesia economy, a country that recorded a 17% appreciation of its currency in the period