Download The Bundesbank

The Bundesbank
The Deutsche Bundesbank, being the
central bank of The Federal Republic of
Germany is an integral part of the
European System of Central Bank (ESCB)
 Participate in The ESCB:
* Maintaining price stability
* Hold and manage the foreign reserve of
The Federal Republic of Germany

The Bundesbank
* Arrange the execution of domestic and
international payments.
* Contribute to the stability of payment
and clearing systems.
The Bundesbank
The Bundesbank participates in the
monetary policy decisions of the governing
council of the ECB. It implements the
eurosystem’s single monetary policy in
Germany. This includes the refinancing of
The German Banking System through the
eurosystem’s monetary policy instruments.
The Bundesbank
Fulfill this mandate without politicel
pressure
 It is independent of and not subject to
instructions
 Responsible for providing information
about the single monetary policy

ECB
EMU
EMS
ECB
Monetary Policy
ECB
It is the monopoly supplier of the monetary base
 A change in money market interest rate induced
by the central bank sets in motion a number of
mechanisms and actions by economis agents
( SHORT RUN )
 A change in the quantity of money in the
economy will be reflected in a change in the
general level of prices. But it will not induce
permanent changes in the real variable, such as:
real output / unemployment. ( LONG RUN )

ECB

Operational Framework :
* Operational Efficiency
* Equal treatment and harmonisation
* Decentralised Implementation
Bank Indonesia
Menetapkan dan melaksanakan kebijakan
moneter
 Mengatur dan menjaga kelancaran sistim
pembayaran
 Mengatur dan mengawasi bank – bank
umum

Bank Indonesia
Gubenur
Deputi Gurbenur Senior
Min 4 max 7 Deputi Gurbenur
Bank Indonesia
Independensi
+: - Semakin tinggi independensi semakin rendah & stabil
tingkat inflasi
sehingga mendorong pertumbuhan
ekonomi jangka panjang
- Semakin tinggi independensi semakin kecil defisit
anggaran belanja dalam jangka panjang
- : - KebMon merupakan bagian dari kebijakan ekonomi
secara keseluruhan sehingga tidak ada artinya jika
memisahkan keb.fiskal, moneter dan ketenagakerjaan.
- Apabila pejabat bank sentral tidak dipilih secara
demokratis maka keputusan tentang suku bunga, nilai
tukar, inflasi & hal – hal moneter lainnya tidak mewakili
kepentingan masyarakat pada umumnya.

Bank Indonesia

Tingkat Independensi BI :
* goal Independence
* Instrument Independence
* Personal Independence
Bank Indonesia
UU no 23 tahun 1999
 Perubahan independensi BI
:
* Tahun 1968 – 1999
( Political independence & Economic
independence terbatas )
* Tahun 1999
- psl 41 : masa jabatan dewan gubernur
- psl 57 : dewan gubernur tidak dapat
diberhentikan kecuali alasan tertentu

Bank Indonesia
- psl 47 : Dewan gubernur tidak boleh merangkap
jabatan lain
- psl 43 : Wakil pemerintah hadir dalam Rapat Dewan
Gubernur, memiliki hak bicara tapi tanpa hak suara
- psl 7 : Mencapai dan menjaga kestabilan rupiah
- psl 8 : Menetapkan & melaksanakan KebMon
- psl 10 : Menetapkan suku bunga kunci
- psl 12 : melakukan kebijakan nilai tukar
- psl 56 : Dilarang memberikan kredit pada pemerintah
Bank Indonesia
KebMon : kebijakan otoritas moneter atau
bank sentral dalam bentuk pengendalian
besaran moneter untuk mencapai
perkembangan kegiatan perekonomian
yang diharapkan
 Tujuan :
* Price stability
* Output riil
* Lapangan kerja

Bank Indonesia

KebMon
Ekspansif
Kontraktif
Instrument KebMon :
-OPT
-Politik Diskonto
-RR
-Moral Suasion
Strategi KebMon
:
-Penargetan nilai tukar
-Penargetan Besaran Moneter
-Penargetan Inflasi
-Implicit but not explicit anchor
The Key Messages from monetary policy
theory
Do not try tricks; do not try to be too clever
 Keep steady; remain committed to your
mandate even in exceptional circumstances
 Say as much as you can of what you are going
to do; announce a strategy
 Do not be dogmatic; instead follow of policy
which is always in line with your strategy

Literature from Kydland and Prescott
Kydland and Prescott argued that in fact, price
showed a counter-cyclical behaviour - when
economic growth slowed down, prices rose and
when economic growth was strong, prices fell.
They further argue that there are other myths
surrounding business cycles. These include the
idea that real wages fall as growth increases and
vice versa (or are not related to the business
cycle) and that the money supply is an
important factor in leading economic growth.