SUMMARY
The majority of recent research has looked at the effect of the crisis on capital flows. Using Indonesia as a case study, this study examines the efficacy of monetary policy and the impact of global economic shocks on the Net Financial Account, a component of the Balance of Payments, from 1989 to 2020. Dummy variables were used to assess global economic shocks for three crisis periods: the Asian financial crisis in 1998, the global financial crisis in 2008, and the Covid-19 pandemic, which has been ongoing since the end of 2019. The Autoregressive Distributed Lag (ARDL) model was used to examine the long-term and short-term relationships between variables. The findings of the calculation reveal that all variables, that is, monetary policy and global economic shocks, have a short-term and long-term relationship with the Net Financial Account. It is advised that the government and monetary authorities continue to improve economic fundamentals, including financial system stability.