Paper ANALYSIS THE DEVELOPMENT OF

ANALYSIS THE DEVELOPMENT OF INTERNATIONAL MONETARY SYSTEM AND

MONETARY CRISIS IN INDONESIA

COMPILED BY :

YORI GRISELDA SALSABILA 慈丽秀

18044046

JIANGSU NORMAL UNIVERSITY

2020

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TITLE PAGE AND AUTHOR

ANALYSIS THE DEVELOPMENT OF INTERNATIONAL MONETARY SYSTEM AND

MONETARY CRISIS IN INDONESIA

COMPILED BY :

NAME : YORI GRISELDA SALSABILA 慈丽秀

STUDENT ID : 18044046

COLLEGE : BUSINESS SCHOOL

MAJOR : INTERNATIONAL TRADE AND ECONOMIC

CLASS : 18 商151

COURSE : INTERNATIONAL FINANCE

LECTURER : WU QIAN

June, 10th 2020

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ANALYSIS THE DEVELOPMENT OF INTERNATIONAL MONETARY SYSTEM AND

MONETARY CRISIS IN INDONESIA

Yori Griselda Salsabila

JIANGSU NORMAL UNIVERSITY

Email:

yorigriselda@yahoo.co.id

ABSTRACT

This study aimed to know the history and development of international monetary system, the

potential factor that cause the monetary crisis in 1997, and the impact of the monetary crisis on the

Indonesian economy. The results of this research show that the international monetary system is a

single device policy, institution, practitioner, regulation, mechanism that determines the rate at

which one currency is in exchange for another currency. Changes in the monetary system are

caused by economic turmoil. By studying the historical experience will be able to figure out the

emergence of economic instability and adjustment process of international payments balance. The

monetary crisis that has hit Indonesia since the beginning of July 1997, while it has lasted for

almost two years and has turned into an economic crisis, is the paralysis of economic activity

because more companies are closing and an increasing number of unemployed workers. Indeed,

this crisis is not entirely caused by the monetary crisis, because partly exacerbated by various

national calamities that came in a barrage amid economic difficulties such as rice crop failures in

many places due to the long and worst drought for the last 50 years, pests, massive forest fires in

Kalimantan and riots that hit many cities in mid-May 1998.

Keywords : economic growth, financial crisis, monetary policy, price stability

TABLE OF CONTENTS

Page

COVER PAGE………..……………………………………………………..… i

TITLE PAGE AND AUTHOR……….………………………….………… ii

ABSTRACT…………………………….……………………..…………..…… iii

TABLE OF CONTENTS ……………………………….………………… iv

LIST OF TABLES………………………………………………………….. v

LIST OF FIGURES……………………………………..………………… v

CHAPTER

I. INTRODUCTION

1. Background of the Research ………….………………….…….….. 1

II. LITERATURE REVIEW