Analysis of money supply Indonesia: The vector autoregression model approach
Abstract
Endogenous money is a major component of the Post Keynesian economy. This refers to the theory that the existence of money in an economy is driven by real economic upheaval. In this study examines the effect of macroeconomic variables on the amount of money in circulation in Indonesia during the period of global economic recession in 2008 and 2016. The analytical tool used was the Vector Autoregression (VAR) in the period January 2006 - July 2016. From the results of the study, that the variable Amount Money Supply, BI Rate, Exchange Rates, Government Revenues and Inflation have a long-term cointegration relationship. VAR estimation results in the short run show that M2 and BI Rate have a positive effect on M2 movement, Government Revenues and Inflation have a negative effect on M2.
Keywords
Full Text:
PDFReferences
Angraini, Nuri. (2012) Analisis Pendapatan Nasional, Tingkat Suku Bunga SBI dan Giro Wajib Minimum Terhadap Jumlah Uang Beredar Di Indonesia. Universitas Riau.
Ariff, M., Chung, T., Shamsher, M. (2012) Money supply, interest rate, liquidity and share prices: A test of their linkage. Global Finance Journal, 23, 202-220.
Asongu, S., Folarin, O., Biekpe, N. (2019) The long run stability of money demand in the proposed West African monetary union. Research in International Bussiness and Finance, 48, 483-495.
Bank Indonesia (2015) Tinjauan Kebijakan Moneter, Ekonomi & Keuangan Triwulan IV 2015
Bank Indonesia (2016) Analisis Perkembangan Uang Beredar (M2) - September 2016
Ben-Salha, Ousama & Jaidi, Zied. (2014) Some new evidence on the determinants of money demand in developing countries – A case study of Tunisia. The Journal of Economic Asymmetries, 11(C), 30-45.
Bofinger, Peter (2001) Monetary Policy. Oxford: Oxford University Press
Chaitip, P., Chokethaworn, K., Chaiboonsri, C., Khounkhalax, M. (2015) Money Supply Influencing on Economic Growth-wide Phenomena of AEC Open Region. Procedia Economics and Finance, 24, 108-115.
Chung, T., Ariff, M. (2016) A test of the linkage among money supply, liquidity and share prices in Asia. Japan and The World Economy, 39, 48-61.
Hossain, Akhand. A. (2010) Monetary targeting for price stability in Bangladesh: How stable is its money demand function and the linkage between money supply growth and in?ation?. Journal of Asian Economics, 21, 564-578.
Kementrian Perdagangan (2014) Laporan Akhir Analisis Kerjasama Ekonomi dan Perdagangan Indonesia-Jordan. Pisat Kebijakan Kerjasama Perdagangan Internasional. Badan Pengkaji dan Pengembangan Kebijakan Perdagangan.
Kristiawan, Heri (2008) Hubungan Ekspor, PDB, Cadangan Devisa, Tingkat Suku Bunga, Cadangan Minimum dan Tingkat Diskonto dengan Jumlah Uang Beredar di Indonesia 1997-2006. Fakultas Pendidikan Ekonomi. Universitas Sanata Dharma. Skripsi.
Lavoie, M. (1996) Monetary Policy in an Economy with Endogenous Credit Money. In E.Nell and G. Deleplace eds., Money in Motion. London: Macmillan.
LPEM FEB-UI (2015) Overview Inflasi Tahun 2015. Lembaga Penyelidikan Ekonomi dan Masyarakat Fakultas Ekonomi dan Bisnis (LPEM FEB). Universitas Indonesia
Mcgibany, James M., Nourzad, Farrokh. (1995) Exchange rate volatility and the demand for money in the U.S. International Revies of Economics and Finance, 4(4), 411-425.
McKinnon, R. I. (1982) Currency Substitution And Instability In The World Dollar Standard. American Economic Review, 72(3), 320-333.
Mishkin, Frederic S. (2008) Ekonomi Uang, Perbankan, dan Pasar Keuangan: Buku 2. Terjemahan Lana Soelistianingsih dan Beta Yulianita G. Jakarta: Salemba Empat.
Moore, B. J. (1988) The Endogenous Money Supply. Journal of Post Keynesian Economics, 10(3), 372-385.
Mundell, R. A. (1963) Capital Mobility And Stabilization Policy Under Fixed And Flexible Exchange Rates. Canadian Journal of Economics and Political Science, 29(4), 475-485
Nanga, Muana (2005) Makroekonomi: Teori, Masalah dan Kebijakan. PT Raja Grafindo Perkasa, Jakarta.
Nayan, S., Kadir, N., Abdullah, M. S., Ahmad, M. (2013) Post Keynesian Endogeneity of Money Supply: Panel Evidence. Procedia Economics and Finance, 7, 48-54
Nchor, Dennis. , Adamec, Vaclav (2016) Investigating the Stability of Money Demand in Ghana. Procedia-Social and Behavioral Sciences, 220, 288–293.
Nezky, Mita (2013) Pengaruh Krisis Ekonomi Amerika Serikat Terhadap bursa Saham dan Perdagangan Indonesia. Buletin Ekonomi Moneter dan Perbankan. Bank Indonesia, 89-103.
Nopirin (1992) Ekonomi Moneter II. BPFE : Yogyakarta.
Pollin, R. (1991). Two Theories Of Money Supply Endogeneity: Some Empirical Evidence. Journal of Post Keynesian Economics, 13(3), 366-396.
Saputra, Nugraha Nur Adi. (2016) Analisis Faktor-Faktor Yang Mempengaruhi Jumlah uang Beredar Di Indonesia pada Periode Januari 2012-Juli 2015. Naskah Publikasi. Universitas Muhammadiyah Solo.
Schabert, Andreas (2009) Money Supply, Macroeconomic Stability, And The Implementation Of Interest Rate Targets. Journal of Macroeconomics 31. 333-344
Setiadi, Inung Oni (2012)Analisis Faktor-Faktor Yang mempengaruhi Permintaan Uang Di Indonesia Tahun 1999-2010 dengan pendekatan ECM. Fakultas Ekonomi dan Managemen. Universitas Negri Semarang. Skripsi
Smithin, J. (1994) Controversies in Monetary Economics: Ideas, Issues and Policy. Aldershot, Uk: Edward Elgar.
Sriram, S. Subramanian. (2002) Determinants and Stability of Demand for M2 in Malaysia. Journal of Asian Economics, 13(3), 337-356
Sugema, Imam. (2012) Krisis Keuangan Global 2008-2009 dan Implikasinya pada Perekonomian Indonesia. Jurnal Ilmu Pertanian Indonesia (JIPI), 17(3), 145-152.
Tang, Tuck Cheong. (2003) Demand for broad money and expenditure components in Japan: an empirical study. Japan and The World Economy Journal, 16(4), 487-502.
Wray, L. R. (1995) Keynesian Monetary Theory: Liquidity Preference or Black Box Horizontalism. Journal of Economic Issues, 273-282.
DOI: https://doi.org/10.18326/ijier.v1i1.2794
Refbacks
- There are currently no refbacks.
Copyright (c) 2019 Indonesian Journal of Islamic Economics Research
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Indonesian Journal of Islamic Economics Research, p-ISSN 2686-5076 l e-ISSN 2714-5751
This work is licensed under a Creative Commons Attribution 4.0 International License.
