Oil revenues, money, prices, and exchange-rate policies in an oil-exporting economy: Indonesia, 1969-1984

Thesis/Dissertation · Fri Jan 01 04:00:00 EST 1988

OSTI ID:5334574

Somantri, M H

This study investigates the impact of changes in oil revenues on such key economic variables as the money supply, the price level, and the trade balance in Indonesia. A review of the theory applicable to the analysis is presented, together with a brief description of the Indonesian economy during the period under consideration. In order to analyze the quantitative effects of an oil boom on the economy, a simple monetary sector-oriented model was formulated. The model assumes a set of relationships among oil revenue, government spending, money supply, private expenditure, exports, imports, the relative price of non-tradables, and the general price level. A dynamic simulation was conducted to examine the validity and the stability of the model. Tests for model evaluation suggest that the model is stable and capable of tracking the historical time-path of the various endogenous variables.

• Research Organization: Oregon Univ., Eugene, OR (USA)
• OSTI ID: 5334574
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294002 -- Energy Planning & Policy-- Petroleum
ASIA
DEVELOPING COUNTRIES
ECONOMIC ANALYSIS
ECONOMICS
FOREIGN EXCHANGE RATE
IMPORTS
INCOME
INDONESIA
INDUSTRY
ISLANDS
OIL-EXPORTING COUNTRIES
PETROLEUM INDUSTRY
PRICES
TRADE