Abstract

As main macroeconomic policies, monetary and fiscal policies give influences to economic activities on the whole. One of the monetary economic policies is aimed to reach inflation target which can be realized by the Central Bank by applying interest rate approach in order to control money supply. Meanwhile, fiscal policy is planned to achieve economic growth by emphasizing fiscal role in government spending. The writer argues that both macro-economic policies must be synchronized and integrated so that they can meet the main goal to reach both targets above. This essay is a descriptive analysis using secondary data applying a qualitative approach. The writer came to conclusion that a stable integration of monetary and fiscal policies can effectively help Indonesia reach its inflation and growth targets simultaneously.

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