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Journal : Economic Journal of Emerging Markets

MONEY DEMAND: A STUDY ON THE INDONESIAN INFLUENTIAL FACTORS Nano Prawoto
Economic Journal of Emerging Markets Volume 2 Issue 3, 2010
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.v2i3.2310

Abstract

The role of money demand in monetary policy is indisputable. This study analyzes the determinants of Indonesian money demand. It uses Insukindro-Error Correction Model, based on Keynesian and Monetarist theories. It finds that model based on Monetarist theory is preferable. Estimation on the chosen model suggests that money demand for real currency is influenced, in the short term, by total wealth, consumer price index, the red letter religious day, monetary crisis, and in the long term, by domestic interest rates, foreign interest rates, consumer price index, and stock price index. In addition, monetary policy using Certificate of Bank Indonesia, does not influence money demand.Keywords:     Money demand, keynesian and monetarist model, insukindro-error correction modelJEL classification numbers: E41, E49
Permintaan uang di Indonesia tahun 1976-1996 (Konsep keynesian dan monetaris dengan pendekatan PAM) Nano Prawoto
Economic Journal of Emerging Markets Vol 5, No 1 (2000)
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.v5i1.6899

Abstract

Demand for money is one of the large-scale monetary that plays an important role in the behavior of monetary policy in every economy. The monetary policy can give a contribution to reach the economy.