Pattern of Demand For Money

Berlian, Ahmad; Liliana, Liliana; Djambak, Syaipan; Andaiyani, Sri; Ishak, Zulkarnain; Saleh, Muhammad Syrod; Rostartina, Eka; Adnan, Nazeli; Bahri, Fachrizal

doi:10.29259/sijdeb.v1i3.35

Cited by 3 publications

(2 citation statements)

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“…Another factor that affects the public's demand for money is the exchange rate. The exchange rate is the price of a country's currency expressed in the currency of another country (Berlian et al, 2017). Since 1997 until now, Indonesia has adopted a free-floating exchange rate system so that the rupiah exchange rate will be vulnerable to fluctuations and Indonesian people are free to store, own and trade foreign exchange freely.…”

Section: Asian Journal Of Economic Modellingmentioning

confidence: 99%

The Flow of Money Demand in Indonesia: What Drives it?

Wijaya¹,

Nurjanana²,

A³

2022

5009

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Indonesia’s economy is experiencing a contemporary phase marked by decades of financial turmoil. Fluctuations in money demand are inseparable from the responsibilities of Bank Indonesia, which is the holder of rules and regulations and has full control of tracking the effects of financial flows. In reality, the imbalance between the demand for money and the supply of money with limited stock and capacity has an impact on macroeconomic turmoil. The orientation of this study follows up on the causality between gross domestic product (GDP), deposit interest rates and the rupiah exchange rate against the demand for money in Indonesia. The quantitative research approach supports the objective. Time series data from 2006–2020 was obtained from the Central Statistics Agency of Indonesia and Bank Indonesia. The data was analyzed using the error correction model (ECM) through EViews 9.0. The indications are that in the short and long terms, GDP and the rupiah exchange rate have a positive effect and increase the demand for money. An increase in deposit rates has a negative effect on the demand for money. Holistic recommendations concentrate on parallel and collaborative monetary instruments between executive parties, including banking. Also, it is necessary to control and visualize policies that are more comprehensive and consider holistic issues related to the aggressiveness of money circulation, which has the potential to disrupt the macroeconomy.

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Section: Asian Journal Of Economic Modellingmentioning

confidence: 99%

The Flow of Money Demand in Indonesia: What Drives it?

Wijaya¹,

Nurjanana²,

A³

2022

5009

View full text Add to dashboard Cite

show abstract

“…Artinya ketika semakin tinggi perbedaaan suku bunga kedua negara semakin tinggi modal yang masuk yang membuat nilai tukar menurun yang berakibat pada semakin menigkatnya M2 (José R. Sánchez-Fung, 2008). Selain itu, Menurut (Berlian, Ahmad et al, 2017) perbedaan pendapatan, pendidikan, etnik, dan profesi dapat membedakan pola permintaan uang masyarakat.…”

Section: Tinjauan Pustakaunclassified

Dampak perbedaan suku bunga terhadap permintaan uang: Kasus Amerika Serikat dan Indonesia

Marlina

Andaiyani

Hartawan

2019

JEP

Self Cite

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This study aims to look at the demand for money in Indonesia 2010Q1-2017Q4. In this research using the VAR (Vector Auto Regressive) model. This study attempts to predict time series variables and on the dynamic impact of analysis of disturbance factors in each variable and assesses the interrelationships between variables using the program Eviews 9.0. In this study, researchers tried to test Frriedman's theory by focusing on the difference between Indonesian interest rates and US interest rates. The important thing is, this study argues that the differential US dollar interest coefficient from the money demand function can describe financial dollarization in Indonesia. Indonesia is trying to keep capital flows out of other countries, especially the United States by keeping interest rates higher than the United States. This means that the higher interest rate differentials between Indonesia and the United States will make more capital inflow to Indonesia, so will make higher demand for money in Indonesia. The results show that all variables used in this study are stationary at first difference and have the appropriate model in lag 5

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