PANDEMIC SHOCKS AND MACRO-FINANCIAL POLICY RESPONSES: AN ESTIMATED DSGE-VAR MODEL FOR INDONESIA

This paper attempts to investigate the impact of policy mix in dealing with COVID-19 pandemic. We employ New Keynesian Dynamic Stochastic General Equilibrium (DSGE) framework and Del Negro et al. (2007) approach estimate model. effectiveness Indonesia by taking into account real financial linkages, as well other market imperfections. intend analyze evaluate adequacy monetary, fiscal, macroprudential simulating each option using Indonesian-specific factors comparing them. Our findings show that has a greater on accelerating economic recovery but does not necessarily lead anchor inflation.