Alum juggles a mix of policies to battle outflows

July 11, 2018
News

Perry WarjiyoPerry Warjiyo ('91 PhD economics) was the subject of a July 10th Reuters story on Nasdaq.com.

Since taking office seven weeks ago, Bank Indonesia (BI) Governor Perry Warjiyo has raised interest rates more aggressively than any other Asian central banker to help defend a fragile currency and stem destabilising capital outflows.

"Central banks in emerging markets, especially in Indonesia, cannot just take care of the exchange rate of its currency," he told a meeting of senior editors last month. We cannot do that when the problem is a current account deficit," he said, referring to persistent deficits, which have to be funded partly through foreign portfolio flows.

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