Indonesias Economy
... The third reason is the extensive dollarization of the economy due to the lack of confidence in the rupiah. ... The last reason is due to the slow progress of structural reforms that delays improvements in economic efficiency to help strengthen international competitiveness of the economy and external value of the rupiah. ... Taylor is more concerned with the aggregate demand while the economy of a typical DE is on the supply side. It is not easy to measure inflation expectations in an Indonesian economy that is subjected to various shocks of domestic and foreign origins.