The Effectiveness of Monetary Policy and the Effect of Global Economic Shock on Net Financial Accounts in Indonesia

The majority of recent research has looked at the effect crisis on capital flows. Using Indonesia as a case study, this study examines efficacy monetary policy and impact global economic shocks Net Financial Account, component Balance Payments, from 1989 to 2020. Dummy variables were used assess for three periods: Asian financial in 1998, 2008, Covid-19 pandemic, which been ongoing since end 2019. Autoregressive Distributed Lag (ARDL) model was examine long-term short-term relationships between variables. findings calculation reveal that all variables, is, shocks, have relationship with Account. It is advised government authorities continue improve fundamentals, including system stability.