Measurement of the efficiency of monetary policy in Indonesia

Purwanda, Eka; Rochana, Siti Herni

doi:10.20885/ejem.vol9.iss2.art3

Cited by 4 publications

(2 citation statements)

References 7 publications

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“…Moreover, monetary variables that are exchange rate and BI-rate significantly determine inflation rate. This finding confirms that real sector indicated by price is not neutral from the monetary sector (Antoni, 2011;Purwanda & Rochana, 2017). Again, as well as the result analysis using VECM and Granger causality, this estimation supports the phenomenon that domestic inflation in this region partially comes from other countries.…”

Section: Methodssupporting

confidence: 81%

Determinants of Inflation in the Local Economy

Sriyana

2018

Etikonomi

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This research analyzes the determinants of inflation rate in the local economy. It uses co-integration and vector error correction to capture the long and short run relationship between inflation rate and other economic variables. We find that the determinants of inflation rate in Yogyakarta are minimum wage, economic growth, and monetary variables indicated by BI-rate. More finding, exchange rate also contributes to the price change. This research finds evidence of long-run causality between minimum wage and inflation and unidirectional relationship from wage to inflation in the short run. This finding confirms the proposition of non-neutrality wage on price changes. The inflation rate in the local economy depends not only on the regional indicator but also depends on international changes reflected in the exchange rate. Monetary variable indicated by BI- rate also partially contributes to the price changes at the local level. Overall, the local government has successfully managed the price changes.DOI: 10.15408/etk.v17i1.7146

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Section: Methodssupporting

confidence: 81%

Determinants of Inflation in the Local Economy

Sriyana

2018

Etikonomi

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“…Efficiency is a strategy to reduce losses arising from applying monetary policy. Comparing the actual policy with the efficiency limit is one way to assess the efficiency of the central bank's policy (Purwanda and Rochana, 2017). MPE is considered efficient when it results in low output and fewer inflation fluctuations.…”

Section: Introductionmentioning

confidence: 99%

Untitled

2022

IJEM

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This study evaluated the impact of monetary policy efficiency (MPE) and financial market development (FMD) on financial stability using the credit gap as a proxy. New datasets were constructed for the MPE of 63 developing economies from 1990:Q1 to 2021:Q4. The panel homogeneity assumption was verified using the Chow and Roy-Zellner tests, and the findings showed that the model was not homogenous. Thus, the pooled mean group (PMG) estimator was used. The empirical results revealed that MPE and FMD significantly impacted the credit gap. The effects of MPE and FMD on financial stability were as substitutes. Since the sample was divided into two groups: high and low-middleincome nations, the conclusion was robust, and the negative connection between the variables remained. In addition, a dynamic panel estimation was also applied, which found significant effects of MPE and FMD on the credit gap.

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The estimation of efficiency frontier of Indian monetary policy

Patnaik

2024

Reference Module in Social Sciences

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Measurement of the efficiency of monetary policy in Indonesia

Cited by 4 publications

References 7 publications

Determinants of Inflation in the Local Economy

Determinants of Inflation in the Local Economy

Untitled

The estimation of efficiency frontier of Indian monetary policy

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