Reza Ananda Putra
Universitas Ahmad Dahlan

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MONEY DEMAND ANALYSIS IN INDONESIA: THE SVAR APPROACH Reza Ananda Putra; Mahrus Lutfi Adi Kurniawan
Riset Ekonomi Pembangunan Vol 6, No 1 (2021): April 2021
Publisher : Universitas Tidar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31002/rep.v6i1.3677

Abstract

This study aims to analyze the response of demand for money to shocks in macroeconomic variables such as income, inflation and interest rates in Indonesia. The study used time-series data from 2008: Q1 - 2019; Q4 with SVAR approach. Based on the result there was a positive response from money demand to income shocks but a negative response to inflation and interest rate shocks. Income variable is volatile and contributes the most to money demand compared to inflation and interest rates.