Relationship Between Monetary Policy, Fiscal, Country Risk and Macroeconomic Variable in Indonesia

This study is to analyze the relationship of monetary policy, fiscal and country risk on macroeconomic variable
in Indonesia. The data used are secondary data from World Bank, BPS, and Indonesia Bank from 1980 to
2014. The estimation method used is error correction model. The study shows that monetary policy which
is proxied with the amount of money supply has positive and significant impact on economic growth, while
fiscal policy has insignificant impact on inflation, and country risk has significant impact on interest rate and
then on inflation.