International Journal of Accounting & Finance in Asia Pasific
Vol 6, No 1 (2023): FEBRUARY EDITION OF INTERNATIONAL JOURNAL OF ACCOUNTING FINANCE IN ASIA PASIFIC

The Role of The Central Bank on Economic Growth (Study Case: Indonesia)

Wijaya, Asyadia Haq Zahra (Unknown)
Ismail, Munawar (Unknown)
Santosa, Dwi Budi (Unknown)



Article Info

Publish Date
20 Feb 2023

Abstract

Since the last decade, Indonesia had a relatively low economic growth performance compared to several countries in Southeast Asia. To encourage economic growth in Indonesia, the role of the central bank is one of the policies that need to be considered. Therefore, this study aims to analyze the role of the central bank, especially in controlling inflation, exchange rates, and interest rates on economic growth. This study uses the ARDL method to ensure short-term and long-term relationships between variables. The results showed that there is a short-term and long-term relationship between interest rates and exchange rates on economic growth. This study also finds that there is no significant relationship between inflation and economic growth in both the short and long term. This analysis shows various central bank policies to stimulate economic growth such as exchange rates and interest rates.

Copyrights © 2023






Journal Info

Abbrev

IJAFAP

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

IJAFAP aims to feature narrative, theoretical, and empirical-based research articles within the abovementioned fields. The journal welcomes articles relating to the current issues of financial decision making as well as its impact on society. IJAFAP carries out the mission to feature narrative, ...