Formula year 2009 Economic Improvement

When the global crisis strikes the world marked the failure of financial institutions in the United States unions, the entire world's Central Bank to do the trimming of interest rates. No one exception and even some countries to make the moratorium on the stock market and money markets.

It is a phenomena and extravaganza global crisis, worst than the great depression because Credit Crunch also attacked worldwide countries. The crisis that occurred in the United States on the impact of this crisis across the country in the world, even richest countries such as Japan advanced countries, the European Union, Australia also submerged in crisis.

Trimming interest rates by the Fed followed by almost all other countries except Indonesia. Indonesia increased interest rates with reason to keep the flow of foreign exchange abroad. In the short term it is true, trimming the interest rate level is appropriate if we see from the time lag it.

Experts estimate the economy (World Bank and IMF) that the global crisis will continue to progress in 1 year to the next. The decrease of export demand from developed countries causing third world countries also fell in the crisis, low growth and high levels of unemployment caused world oil prices had fallen so sharply ranges below $ 60 USD in 1 month recently.

The trimming of interest rates was to stimulate the real sector, but if we see this far, the multiplier not indicate the results of positive results. Obama also promised to increase employment in 2009.
Playing with the monetary extent this formula must be supported by a fiscal formula that can be expected to stimulate the world economy in the long term. Some fiscal policies that can be taken are:

1. Tax incentives
Tax incentives are differed as tax incentives for consumers and producers. We should take it care, which sectors should be received more incentives. High level of unemployment leads to lower demand from the household therefore, there was over supply. So costumers should get tax incentives in bigger portion.

2. Subsidy
Tax incentives are also part of the overall subsidy. Subsidies to the consumer sector are expected to increase demand from households. Sector producers should also receive subsidies, with the producers dare to do such activities because of a decline in total production costs.

3. Easier terms of credit conditions to the private sector.
The destruction of the banking sector in America that foreshadows a hardening of credit to the sector and producers must be done to avoid the occurrence of bad debts. However, if this is done formally, I believe, we are troubled exit from the circle of this global crisis. With the ease credit terms requirements, the production sector will be skittish and employment will be created. Supply creates its own demand will occur