Indonesia's New Banking Law

An accumulation of old banking laws was replaced with a single new one early in 1992. The previous focus on the lending side of banks' activities has been replaced by greater emphasis on their deposit mobilisation and intermediation functions. Distinctions between commercial, savings and development banks have been dropped—the only functional distinction remaining being that between banks which offer cheque account services and the much smaller ones which do not. Important changes relating to ownership include placing the state banks on the same legal footing as those from the private sector, allowing them to sell their shares to the public, and permitting foreigners to purchase shares in domestic banks listed on the stock exchange. Those who breach the new law are liable to heavy fines and gaol terms. The law allows the government to require all (not just state) banks to undertake special developmental or equity-oriented programs.     

Indonesian Trade Reform in Close-Up: The Steel and Footwear Experiences 1

In evaluating the widespread trade liberalisation that has occurred in Indonesia since 1983, it is important not to lose sight of the uneveness of many of the reforms, both intra- and inter-industry, that have been implemented. Different industry structures help to account for the different degrees of reform delivered within and between industries. This paper examines the extent and implications of the liberalisation process in two structurally diverse industries — steel and footwear. One objective of this paper is to illustrate the consequences for competitiveness of the reform sequence and the instruments of reform; another is to highlight the impediments to further progress.     

Exchange Rate Regimes in the Asian-Pacific Region

This survey is designed to complemenl Treadgold's on Macroeconomic Manugement (APEL March 1990) by reviewing the literature on exchange rate regimes with reference to the Asian-Pacific region. After a brief typology of exchange rate regimes, the article discusses the choice between currency system, the relationship between choice of regime and policy objectives, constraints on choice of regimes, the distinction between 'traded' and 'non-traded' goods, the 'booming' export sector case and finally the relevance of regulatory distortions and the related question of transition from one regime to amiher.     

Patient empowerment strategies for a safety net

The Milwaukee County General Assistance Medical Program implemented strategies to improve the delivery of care to its patients that include patient education and a Nurse Telephone Line. The partnership between a county-funded program and an academic health center has been very productive and resulted in improvements to the program that benefit underserved patients. The outcomes of these educational strategies are described.     

DISEQUILIBRIUM BUFFER STOCK MODELS: A SURVEY

Abstract. This paper surveys the growing literature on buffer stock models of the monetary transmission process. The first part indicates the basic issue of how (assumed) exogenous changes in the money supply work their way through the economic system via disequilibrium in the money market. After a brief historical development, buffer stock models are divided into four types depending upon whether the disequilibrium arises in stocks and/or flows, and to whether changes in the money stock are purely exogenous. The empirical implications, including how buffer stock models explain the recent behaviour of money demand functions are given. Theoretical and empirical criticisms of the models are presented in terms of the classification system. The survey concludes that whilst the buffer stock notion is an interesting idea, the current models do not lend themselves to empirical testing, and those models which do have performed poorly.