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2020 | 150 | 162-181
Article title

Assessment the Impact of Fiscal and Monetary Policy on West Java Province of Indonesia: A Computable General Equilibrium Analysis

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Manufacturing Industry has an essential role in West Java economy in contributing to regional output and level employment. Besides, it is very fragile from internal and external shudder. Thus, government intervention is considerably needed to offset the negative impact that might be ensued due to internal and external shocks. This study will analyze the impact of both government fiscal policy and bank monetary policy on industry and West Java economic performance by using the Computable General Equilibrium (CGE) model. Fiscal and monetary policy will positively impact West Java macroeconomic performance in terms of change in real GDRP, investment, consumption, and capital rate of return, with the most significant fiscal policy impact. Conversely, the result is expected to vary at the sector level, and the West Java industry is not so receptive to changes in interest rates that represent monetary policy.
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