On the Right Track, but not Enough
Tuesday, September 13, 2005
The steps taken by Bank Indonesia to dry up the rupiahs liquidity is correct. But the banking sector also needs to cut down their spread.
arsip tempo : 173515261545.
EVERY time the economy heats up, the central bank usually raises interest rates to cool it down. What is known as tight money policy is intended to slow down inflation or maintain the value of the currency. Conversely, if economic performance is seen to be kind of slow, interest rates are lowered to motivate businesses to start up again with the hope that the economy will grow rapidly again thus improving the peoples welfare.
The art of raising
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