Economic Shocks and Exchange Rate as a Shock Absorber in Indonesia and Thailand

This study investigates the requirement for the exchange rate to be a shock absorber in Indonesia and Thailand from 1986 to 2007. In general, we find that the economic shocks have predominantly been asymmetric relative to the US and the Japanese economies. Yet, the weights attached to the US dollar remain respectably high in the exchange rate management of the rupiah and the baht, in particular for the latter currency, during the post-1997 crisis. Hence, relinquishing the role of exchange rate as a shock absorber has been costly during both the pre-and the post-1997 crisis periods for these Southeast Asian countries. Furthermore, it is arguably more costly for Thailand during the post-1997, and for Indonesia during the pre-1997 crisis.Economic Shocks; Shock Absorber; Exchange Rate; Structural Vector Autoregression; Indonesia; Thailand

Understanding the Use of Cohesion Devices and Coherence in Writing

To make sense of the writing, the writer needs to understand the use of cohesion devices and coherence. It is important that writing be coherent as well as cohesive. A text is cohesive if its elements are linked together, and a text is coherent if it makes sense. This paper titled “Understnding the use of Cohesion Devices and Coherence in Writing”. This study is aimed to know and understand the using of cohsion devices and coherence in students‟ writing. To make sense of the writing, the writer needs to understand the use of cohesion devices and coherence. It is important that writing be coherent as well as cohesive. This article discuss the concept of writing, cohesion devices, and coherence. The last, this article describe the importance of understanding the use of cohesion device and coherence in writing

Pursuing Inflation Targeting Policy Framework in the Midst of Inflationary Pressures and Fiscal Constraint in Indonesia

Pushing for a higher and a more robust growth while maintaining price stability within a target range of inflation continue to be core tasks for the macroeconomic policy management in Indonesia in recent years. Whilst inflation was successfully kept below the target of 7 percent at the end of 2007, the monthly year on year inflation has already gone above 10 percent by May 2008 and is expected to reach 11 percent by end of 2008. Fiscal policy continues to be relatively marginalized and lacks of stimulus, with a significant share of the current expenditure of the 2008 budget has to be allocated to finance subsidy and debt service. Our study investigates the commitment of the country to its inflation targeting (IT) policy in the midst of fiscal constraint and the urgent need to push for higher growth rate. It examines preliminary outcomes of the IT policy and highlights dilemmas and potential policy trade-offs.Inflation Targeting Policy; Expenditure Policy; Inflation; and Fiscal Constraint

The Concepts of Equilibrium Exchange Rate: A Survey of Literature

The aim of this paper is to review and examine a collection of 'most commonly applied' theoretical and empirical models of equilibrium exchange rate. The presentation on each model starts with an introduction of core theoretical frameworks. It will then be followed by discussions on relevant empirical steps to estimate the equilibrium rate. The rest of the paper will focus on assessing the strengths and weaknesses of the model and how each relates to the other.

The Concepts of Equilibrium Exchange Rate: A Survey of Literature

The aim of this paper is to review and examine a collection of ‘most commonly applied’ theoretical and empirical models of equilibrium exchange rate. The presentation on each model starts with an introduction of core theoretical frameworks. It will then be followed by discussions on relevant empirical steps to estimate the equilibrium rate. The rest of the paper will focus on assessing the strengths and weaknesses of the model and how each relates to the other.Equilibrium, Exchange Rate Models, PPP, Monetary Model, BEER, DEER, FEER, PEER and NATREX

Interest Rate Spreads and Mandatory Credit Allocations: Implications on Banks Loans to Small Businesses in Indonesia

Recent studies have consistently shown that the East-Asian crisis-stricken countries have suffered from different degrees of credit crunch, particularly during the early stages of the crisis. However, only few of them have looked closely into the breakdowns of the loans and the roles of different groups of banks in explaining the rise and fall of bank lending, particularly to the small businesses during the post-1997 financial crisis. This paper aims to fill this void by looking at closely the recent development in Indonesia.Small-Scale Enterprises, Bank Loans, Interest Spreads, Mandatory Credit Allocation, State and Private National Banks, Indonesia

Techniques of Translating Thesis Abstracts of Economics Department Students in Medan State University

The study deals with the techniques of translation on thesis abstracts inEconomics Department. The objectives of study were to identify the types oftranslation techniques, to find out the most dominant type of translationtechniques used, and to describe the reasons of the translation techniques used intranslating thesis abstract. The study used descriptive qualitative design.Nazir(1998: 34) states that descriptive qualitative is a method of research thatmakes the description of the situation of events or occurrences clearer. It isunderstood that descriptive qualitative is a method of research which provides thedescription of situation, events or occurrences, so this method is an intention toaccumulate the basic data. Qualitative research involves analysis of data such aswords and phrases written in abstracts. The data were taken from twentytranslated thesis abstracts of Economic Department. The findings show that therewere eight techniques of eighteen techniques used in thesis abstracts. The mostdominant type of translation techniques was established equivalent due to thetranslator intention to avoid misunderstanding by using the dictionaries andparticular equivalent known by target language. It is recommended that in doingany translation, the most essential thing is to keep the meaning or the message ofthe source language remains the same when it is being translated into the targetlanguage