ANALISIS KAUSALITAS ANTARA BI RATE DENGAN JUMLAH UANG BEREDAR DI INDONESIA

Maria Alvyonita Alvyonita (Prodi S1 Ekonomi Pembangunan USU)
Paidi Hidayat (Prodi S1 Ekonomi Pembangunan USU)

Ekonomi dan Keuangan
Vol 2, No 10 (2014)

This research has a purpose to analyze causality relationship between BI Rate and money supply (M1) in Indonesian. This research used time series data is monthly data period 2010-2012. The method of this research is method Cointegration test, Granger Causality test, and VAR. The results of analysis Cointegration test with VAR model, which means not a proper balance in the long run between BI Rate and M1. Granger Causality test analysis results, indicates that there is a bilateral causality relationship, are the BI Rate affect M1, and M1 affect BI Rate too.Keywords : BI Rate, Money Supply (M1), Cointegration test, VAR, and Granger Causality test