These cross-border effects of policy, and their asymmetric nature, are somewhat puzzling. One would expect a more symmetric relationship between the United States and the euro area, for example, as the two regions are of comparable economic size. It will be interesting to see if these relationships persist. I draw two conclusions on this issue.
Slide 3: As a country with open economic and financial system, Indonesia will closely relate to the global economic constellation. Furthermore, amidst the world’s divergent monetary policies and changing perception of external risks resulting in the increasingly stronger US dollar on a global scale. 5. Slide 4: Throughout 2014, Indonesia must face different financial market turbulence.