GOLD CURRENCY SYSTEM SOLUTIONS AS the financial crisis

The economic crisis in Asian countries is in progress since July years ago appears to be increasingly concerned. Japan as a state superior power in the area Asiajuga not deny the power of the effects of the economic crisis triggered by the crisis meneter. Until March 1999 economic growth for this country sakura first time during last 23 years, minus a 0.5% contraction.
In the country, the situation more worse .. Exchange rates (exchange rate) anjlok the rupiah, . In the spot currency marketJakarta, Wednesday (17 / 6), closed on the rupiah exchange rate of Rp 16.400/16.900 per U.S. dollar. A number of fantastiC and never before! In this case, the rupiah up to 60-65%. Besides economic growth, which was reached 8.07% was now estimated at -4%. The rate of inflation is not half-hearted over 100%. According to the estimate of the experts, if this situation continues then the economy will be the downfall. And what the most appropriate solutions to overcome the problems mentioned above?

At first is the financial crisis

The monetary shock that Indonesia was at this time of a monetary shock in the neighboring countries. Mid-1997 when the monetary crisis began to shake Malaysia, Thailand and South Korea. Previously, this country is still optimistic that the crisis is not over will Indonesia, because they were still unsure of the opinion that buzzed that "our economic fundamentals are very strong."
Signs of increased U.S. dollar exchange rate began to appear in early July 1997, Bank Indonesia widen the intervention band from 8% to 12% on 11 July 1997. pressure on the rupiah remains large so that Bank Indonesia will need to make supply-side intervention of the U.S. Dollar on 21 July 1997 at U.S. $ 2 billion. Rupiah exchange rate of Rp can survive until the end of July 2660 intervention in the supply side followed by the intervention on the demand side, with the SBI interest rate of 14% to 30%. In fact with this solution, there was a crisis that is continuation of liquidity crisis.
Pressure against the increasingly strong rupiah, Bank Indonesia until August 14th release on the same band of intervention, which means free US dollar exchange rate to move entirely according to market mechanism. The day is also the value of U.S. dollar to Rp 2,800 corrected.
Correction value of the U.S. dollar more quickly against the dollar investor mistrust, and the U.S. dollar rose to Rp 3,120. Bank Indonesia to cope even with the narrow side demand SBI raised interest rates and attract deposits to state-owned Bank Indonesia at Rp 12 trillion or about 46% of all deposits of funds owned. Bank panic in Indonesia was finally to intervene of U.S. $ 650 million (6 October) that also not strong enough, and the exchange rate reaches the value higher that time, namely Rp.3.950. The next day the government asks for IMF assistance. Teryata and after the IMF to intervene, the value of rupiah exchange rate is not increasing significantly, even in a rapid impact exchange rates (exchange rate) of rupiah against U.S. dollar is not only felt by the people who occupy and use a dollar, but has to the whole society.. All to be exposed to the crisis, and they become very familiar with the term "krismon" that the financial crisis as the beginning of the disaster and the disaster occurred.
When we and in depth knowledge, all the economic turmoil that occurred from the two problems pokok. The first issue of currency, the currency of a country is no longer guaranteed by which the gold is worth the money to make money practice not only as a means of exchange, but has become a commodity that sale. Thus, to discuss problems and find solutions on the right , hams we examine the role and function of the actual money!