1945

The Korean war boom caused serious inflation in Indonesia. Improvement in the terms of trade and expansion of exports led to a considerable rise in money, and also in real incomes, widely distributed through wage increases and rising prices of home-produced goods. Production, though responding to this stimulus, barely exceeded the pre-war level, and production per capita did not reach the pre-war level. The supply of consumers’ goods in particular did not keep up with increasing incomes, and rising expenditure led to strong upward pressures on prices.

Related Subject(s): Economic and Social Development
Sustainable Development Goals:
Countries: Indonesia
/content/books/9789210599382s003-c007
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