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Respon Dinamis Kurs terhadap Tingkat Bunga di Indonesia Rahmi, Nanda; Fachrurrozi, Kamal
Jurnal Samudra Ekonomi dan Bisnis Vol 12 No 1 (2021)
Publisher : Fakultas Ekonomi Universitas Samudra

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33059/jseb.v12i1.2107

Abstract

This study is to analyze the dynamic response of exchange rate to interest rate in Indonesia. Yearly data form 2002 to 2018 are used in this study and autoregressive model is utilized to capture dynamic response. The results show that the exchange rate has negative and significant response to interest rate. Furthermore, the effects of interest rate on exchange rate is higher in longrun than short-run. It is suggested to monetary authority to strength the domestic fundamental to achieve more effective of interest rate to stabilize the exchange rate fluctuations.