Desentralisasi Fiskal dan Penciptaan Stabilitas keuangan Daerah

Penulis: Joko Tri Haryanto, Ester Sri Astuti

Indonesia has been implemented decentralization era since 2001th in order to increasing local empowerment and local capability. During this period central government gave a all of the authority to the local government excepted authority for the political, finance, national defence, justice and religion.

Financial stability is the most important things on the monetary area. many theorytical background described that decentralization have relation with the local financial stability. Using statistic approach (panel data) we could be proved that decentralization have negative relation with the local financial stability and also the other variable such as population, GDRP, construction price index and volatility of money.

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