International Journal of Accounting & Finance in Asia Pasific
Vol 2, No 1 (2019): February 2019

Analysis of The Effect of Exchange Rates, E-Money and Interest Rates on The Amount of Money Supply and Its Implications on The Inflation Level in Indonesia 2012-2017 Period

Ramadhani, Rizal (Unknown)
Nugroho, Widyo (Unknown)



Article Info

Publish Date
20 Feb 2019

Abstract

This study aims to find out and test the partial influence of exchange rate variables, Electronic Money (e-money), interest rates on money supply; and the partial effect of variable exchange rates, e-money, interest rates, and the amount of money supply toward the inflation rate. This research method is quantitative, with a type of causal research. The geographical scope of the study is Indonesia with a six-year period (2012-2017). Based on the periodization, by using monthly data, each variable has 72 data (n = 72), which is 6 years x 12 months. The data used was secondary data. The multiple linear regression analysis was used to test seven hypotheses all of which are bivariate models. The results show that the exchange rate (USD to IDR exchange rate) has a positive and significant effect on the money supply. E-money has a positive and significant effect on the money supply. Interest rates have a negative effect, but are not significant for the money supply. Exchange rates have a negative effect, but not significant to inflation. E-money has a negative effect but not significant on inflation. Interest rates have a positive effect but not significant on inflation. Money supply has a negative effect but not significant on inflation. Keywords: exchange rate, e-money, money supply, interest rates, and inflation

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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, ...