The objective of this study was to analyze the impact of the use of electronic money (e-money) to the velocity of money in Indonesia. The use of this payment instrument makes consumers easy to pay, thereby increasing the level of consumption. Data used is the nominal of transaction in 2013 to 2017 from Bank Indonesia database. The method in this study used regression model with OLS (Ordinary Least Square) estimate. The finding in this study showed e-money transactions consisting of the nominal e-money transactions, nominal ATM-Debit card transactions and nominal credit card transactions partially no significant effect on the velocity of money in Indonesia
Monetary expansion is the monetary policy pursued by the monetary authority by adding the amount of currency in circulation so that the total amount of money in circulation increases. Added Theoretically the money supply would encourage economic actors (consumers, producers and traders) to increase its activity which affects the increase in aggregate demand. This study will prove whether empirically (especially for the Indonesian economy) increase the money supply will boost aggregate demand. Authentication is done by using a sequential model equation (equation partial) which is a series of simple linear model using OLS and test methods hypotesia "t". The results of this study showed a positive policy of monetary expansion and significant effect on increasing aggregate demand (AD), as well as with all components of aggregate demand (consumption, investment, Gevernen spending, exports, and imports). Keywords: Monetary expansion, Aggregate Demand
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