International currency substitution and the demand for money in the euro area

Freitas, Miguel Lebre de

doi:10.1016/j.econmod.2022.106064

Cited by 2 publications

(2 citation statements)

References 48 publications

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“…Money is a social convention where one party accepts it as payment bin the expectation that others will do so too. Money denominated in a particular currency (money in a traditional sense) includes money in a physical format (notes and coins, usually with legal tender status) and different types of electronic representations of money, such as central bank money (deposits in the central bank that can be used for payments) or commercial bank money [20], [23], [25].…”

Section: Literature Review Money and Digital Currencymentioning

confidence: 99%

The Impact of Digital Currency on Demand for Money: Evidence from Indonesia

Hafid Saiful Fikr,

Riani,

Mustofa

et al. 2024

JEFMS

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The purpose of this study is to examine the impact of digital currency transaction variables on the demand for money in Indonesia. The data used are data on the volume of mobile banking transactions, internet banking, interest rates, the level of currency fluctuations, and inflation on the demand for money for the period 2013 to 2022. Data analysis uses Autoregressive Distributed Lag (ARDL) cointegration method. The results of regression testing can be concluded that the long-term relationship is valid. In addition, using CUSUM and CUSUMQ from the quadratic test, the demand for money in Indonesia is relatively stable using the narrow definition of money, it implies that there haven't been significant and persistent shifts in either the mean or the variance of the narrow money supply. A stable demand for money suggests that the economic agents in Indonesia, such as households and businesses, are not undergoing substantial changes in their preferences or behaviors related to holding money. This stability can have implications for monetary policy and economic planning, as it indicates a certain level of predictability in the demand for money. However, it's crucial to keep in mind that economic conditions and factors influencing the demand for money can change over time. Therefore, continuous monitoring and periodic reassessment of the stability of the demand for money are necessary for accurate economic analysis and policy formulation.

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Section: Literature Review Money and Digital Currencymentioning

confidence: 99%

The Impact of Digital Currency on Demand for Money: Evidence from Indonesia

Hafid Saiful Fikr,

Riani,

Mustofa

et al. 2024

JEFMS

View full text Add to dashboard Cite

show abstract

“…Money serves as a medium of exchange, unit of measurement, store of value, and standard for deferred payment in the economy. In addition, money also has varying levels of liquidity, which describes how easily it can be exchanged for goods and services (Lebre DE Freitas, 2022).…”

Section: Money and Demand For Moneymentioning

confidence: 99%

Analysis of Factors Affecting the Demand for Money in Indonesia

Fatihah,

Pasaribu

2024

JIMEA

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Demand for money is defined as people's tendency to save money for various purposes, such as transactions, anticipation, and speculation. Many factors related to economic, social, political and psychological conditions influence the demand for money. This research aims to evaluate the impact of various variables on money demand in Indonesia from 2018 to 2023. This research uses an Error Correction Model (ECM), which can measure short-term and long-term correlations between the variables studied. The money supply (M2) is the dependent variable of this research, and the independent variables are interest rates, inflation and the US dollar exchange rate against the rupiah. The results show that except for inflation, all independent variables influence money demand significantly in the long run. In the short term, only the rupiah exchange rate has a significant influence on the demand for money.

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International currency substitution and the demand for money in the euro area

Cited by 2 publications

References 48 publications

The Impact of Digital Currency on Demand for Money: Evidence from Indonesia

The Impact of Digital Currency on Demand for Money: Evidence from Indonesia

Analysis of Factors Affecting the Demand for Money in Indonesia

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