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Journal : Journal Development Manecos

Monetary Policy and Currency Stability Analyzing the Impact of Policy Tools and External Factors in Developing Countries Nurhaliza, Nurhaliza; Gafur, Ahmad; Nugroho, Agung
Journal Development Manecos Vol. 2 No. 1 (2024): Journal Development Manecos
Publisher : Scieclouds Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.71435/604091

Abstract

This paper aims at reviewing the effect of the monetary policy towards currency stability in developing countries with reference to the manner in which monetary instruments and external shocks affect the exchange rate and inflation rates. The analysed data concerns several developing countries for the period 2010-2020, and applied methodology involves both regression and sensitivity analysis. Major conclusions show that both the interest rates and the inflation rates rise, lead to increase in exchange rates volatility, but the reserve requirements and the foreign reserves have a positive effect on the exchange rates stability. Advanced analyses endorse that the external factor like as external debt and commodity exports have a crucial influence on the currency stability. Also, it analyses implications of the non-standard measures like quantitative easing, and establish that currency debasement may have dangers for emerging market economies with balance of payment risks. With this research, the following gaps in the existing literature are covered: First, it presents a more profound perspective on the effectiveness of monetary policy and second, it contributes an understanding of the relationship of monetary policy and the stability of its currency. The implications of the findings are therefore as follows Policies for developing countries have been reviewed and it has been made very clear that monetary policies should be undertaken cautiously in order to reduce on inflation as well as external factors affecting the economy.
Co-Authors Abdullah, M Adli Adela, Nurul Adi Purwanto, Sayugo Adita, Wildhan Pratama Affandi, Aulia Aftagina, Sisilia Agnes Yunanda Widariyono, Dimas Agustin, Dewi Ahmad Fuadi Aisyah, Rohil Alber, Alber ama, Fatma Amelia Sari, Selvy Amin, Muslim Ananta, Azra Anggraini, Sephia Anisa Fitri Anita Ade Rahma Apfani, Sry Aprizal Aprizal Aratha, Deane Cika Aritonang, Daniel Assya’bani, Ridhatullah Astuti - Aulia Nurul Hikmah Avianingtyas, Hayunda Azahra, Elda Camellia Camellia, Camellia Chakafhorti , Dhifta Damayanti, Ni Luh Tri Dewi Darmawan, Adichandra Febryana Yuscatama Darnetty, Darnetty Dawati, Erni Depi, Sita Dian Miranda Dina Dina, Dina Efendi Efendi Effriansyah, Muhammad Kevin Endi, Tarisa Erna Erna, Erna Eva Zulisa Fadila, Sisca Nurul Fajar Sari Tanberika Farah Azila , Nur Fatimah, Sri Putri Fatmawati, Sarah Fiqratama Mattotorang, Andi Fitriani Fitriani Gafur, Ahmad Ghovirin, Khoirul Guntara, Dewa Hailuddin Haliatur Rahma, Haliatur Halimatusyadiah, Halimatusyadiah Hamdani Hamdani Hanifa Aisyah Hannas, M. Khairil Anwar Hanum, Sayidah Latifah Harahap, Akhir Pardamean Harahap, H. Indra Harahap, Nur Adawiyah Hariani, Mila Harmin Adijaya Putri Haryadi - Hasan Basri Hasibuan, Nurmina Wati Hasmi, M. Ali Hilal, Farhan Hoiroh, Mutiara Husnul Khatima, Husnul Ika Amalia, Ika Indah Sari Wayroro, Annisa Indy Irawan, Regita Aulia Irdina, Dwi Hanifa Irtawati, Andy Sri Isti’adzah Nadiar, Anugerahayu Isti’adzah Nadiar, Anugerahayu Jamaluddin Jamaluddin Jamaludin . Junaidi Junaidi Kania Indraswari, Dara Kasman Ediputra, Kasman Kassa, Adriana Khadijah, Syarifah Nur Khairumman, Khairumman Khilda Shopia Kurniawaty Fitri Lahmuddin Lubis Lailatul Hidayah Lubis, Fauziah Lubis, Pitri Aulia Usman Mainy Handiana, Cut Mardiya, Rizka Mawar Mawar, Mawar Mawarni, Heni Ma’rifah, Indriyani Megawati - Muazzin Muazzin, Muazzin Muhammad Qorib Murtafia, Murtafia Musarofah, Musarofah Musdalifah Musdalifah Mutiara, Dwi Utamika Nabillah, Rana Nadia, Syifa Fikratun Najah, Eka Safiatun Nasbar, Nasbar Nasrullah, Muh. Nastiti, Retno Nataza, Oktavia Naziah, Bahjatun Nilam, Muhammad Amri Jamal Ningsih, Rika Nita, Yureya Novella, Finkan Nugroho, Agung Nur Amalia Nurdin, Fadilah Nurfadillah Nurfadillah Nurfitriah NURHIDAYATI, SAFITRI Nuryani Rustaman oktamarina, lidia Oktaviani, Silvia Pahriana, Pahriana Partika, Riza Pasaribu, Stefania Margareth Perdina, Siska Pujiyantari, Ni Ketut Satialini Putra Astaman Putra, Achmad Dzaky Santana Putri Maharani Giri, Erika Putri, Hikmah Ramdhani Rahayu, Putri Rahmadhani, Difia Rahmat Hidayat Rahmia Dewi, Rahmia Ramadhan Abdul Jalil Rani, Kadek Gita raudatul jannah Reyvaldi, Mohammad Ridha, Zaifatur Rifa Yanti Rifa'i, Ahmad Rifai, Ikhsan Rina Sulicha, Rina Rini Sarianti Rube'i, Muhammad Anwar Rufaida , Erty Rospyana Sahputra, Dika Salahuddin Salahuddin Samosir, Jelita Maria Christine Saragih, Julwansa Saragih, Yuli Erwina Saragih, Yulia Erwina   Sari, Sumila Savandha, Septien Dwi Sayiddina, Sayiddina Sembiring, Putri Septiyanti, Septiyanti Shofia Nurun Alanur S Siddiquee, Azam Md SIGIT SANJAYA, SIGIT Simamora, Vailimlim Simbolon, Irma Chintia Siregar, Nabila Siti Helmyati Siti Istiningsih, Siti Sitti Hadijah, Sitti Situngkir, William Jonatan Sri Artati Waluyati, Sri Artati Suhari Suhari Suhartini Suhartini Suhendra Suhendra Sukmawati Sukmawati Sulpadli, Sulpadli Sulyanti, Eri Sumri , Herlina Susanti Sunoko, Andika Priandana Supriadi Supriadi Suyani, Erni Syafiudin, Syafiudin Syahfitri, Diani Syamsul Bahri Syarif Firmansyah Syarofi, Muhammad Taqiyah, Yusrah Teuku Muttaqin Mansur UJANG KHAIRUL Umami, Raudatul Veronika Lusia Sa Radja, Yustina Via, Lola Vina, Vina Wahyunadi, Wahyunadi Wahyuni, Srie Wan Nova Listia Wangi, Putri Azila Wati, Irma Widi Purwianingsih Wiro'i, Susman Yulia Agustina YULIANA, FITRIA Yushfi Shabrina Hidayati Yuskar, Muhammad Ramadhan Yusuf, Yusri Az-zahro Yuyun Wahyuni Yvonne, Irma Nadiera Zuhdi, Syaira Aurellya Zulfah Zulfah Zuliana, Zuliana Zulkarnain Zulkarnain Zurai Resti