17/02/2009 Uncategorized
Prof Dr Steve Hanke from John?s Hopkins University once again came to Indonesia to share his vision and theory on Indonesia?s monetary condition.
Prof Dr Steve Hanke from John?s Hopkins University once again came to Indonesia to share his vision and theory on Indonesia?s monetary condition. To announce this excellent opportunity to public, UPH held a press conference on February 16.
Attending the press conference are the Rector of UPH Jonathan L Parapak, Senior Advisor of UPH Adrianus Mooy, Dean of UPH Business School Roy Sembel, and James Riady as a representative of Indonesian Chamber of Commerce and Industry.
Given the opportunity, Adrianus Mooy explained the topic Prof Hanke would discuss in his public lecture, entitled ?How Bad is Indonesia?s Monetary Mess?. The lecture is based on the global crisis which has also affected Indonesia.
Another interesting topic of the lecture is to discuss what is actually wrong with the economy management, especially in the US, and how the US government would overcome the crisis.
As one of the countries affected by US economic crisis, it is a great benefit for Indonesia if the US economy condition gets better.
?The more effective US government?s policy in getting US out of this crisis, the more important for us to learn to overcome the crisis in our own country,? explained Mooy.
At the same time, Hanke also pointed out two scenarios that could happen to Indonesian economic condition. The first scenario, which he believes is very popular and fashionable, is deflation. While the second scenario, which is possible as well, is the economic re-inflation.
Prof Hanke stated that Indonesia at the time being is applying intermediate foreign exchange system in which monetary policy and foreign exchange policy are mixed up, making the policy dangerous for the nation?s economy condition.
He also pointed out Indonesia?s economic condition in his article which was recently printed in Wall Street Journal, entitled ?Indonesian Monetary Muddle?. He concluded the content of his article by stating that Indonesia is now facing two options to overcome the crisis. The solutions are called floating and fixing model.
Prof Hanke?s lecture is expected to be able to give inputs about what should be done to overcome the economic crisis. Those inputs cover exchange and interest rate management. This is important for us to be able to learn the right action to overcome the crisis and to not make the same mistakes the US has done.
The public lecture would be attended by members of Indonesian Chamber of Commerce and Industry, universities representative from Jabodetabek (Jakarta, Bogor, Depok, Tangerang, and Bekasi), executives and economic practitioners, as well as common people who are interested.
At the other opportunity, Hanke would also speak to UPH students at UPH campus for the second time. It is meant to help the students to fully understand the world?s monetary and economy condition, especially in US and how it affects Indonesia. This will help us to anticipate further conditions and take the right actions beforehand.
Prof Hanke is a senior professor in applied economics from John?s Hopkins University, Baltimore, USA, who is also a distinguished professor in UPH. He is well known internationally as an economic expert in the area of international economy and monetary policy. He was also a senior economic expert in Economic Advisor Dean when US was under Reagan?s government leadership and once acted as government?s advisor in several countries of Latin America and East Europe.
Ten years ago, Prof Hanke was an economy advisor for former President Soeharto. He was the one who suggested the Currency Board System policy to overcome Indonesia?s economic crisis.
