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The effects of financial deregulation on interest rates, savings, economic growth and bond market in Indonesia
Financial deregulation in Indonesia was first launched in 1983. Among the financial deregulations lal.lllcbed by the government, there are two important of them to mobilize domestic and financial savings, namely financial deregulation of Jlllle 1, 1983 on abolishment of direct control of government on interest rate and financial deregulation of October 27, 1988 on simplification to establish new financial institutions and their branch offices . TI1e main purpose of this research is to examine the effect of these financial deregulations on nominal interest rates, savings, credit, investment, economic growth and the development of bond marlcet In general, the methods used to analyze are cointegration and error correction models. Based on the purpose of the study, this research is divided into four parts. The first part of the research analyzes the determinants of nominal interest rates during the financial deregulation era The result shows that world interest rate , the discollllt rate of certificates of Bank Indonesia and nlU1lber of branch offices of commercial banks (represented as financial deregulation of October 27, 1988) are some important variables influencing the nominal interest rate in the long run . The fluctuation of nominal interest rate in the short run is influenced by real income, discount rate of certificates of Bank Indonesia, nwnber of branch offices of commercial banks and tight money policy. The second part of the thesis analyzes the effect of financial deregulation on savings, credit, investment and economic growth. The results show that financial deregulation have positive impact on gross domestic saving and financial savings, credit, investment and economic growth. The third part of the thesis analyzes the cause of banking crisis in Indonesia Using the logit model and monthly data, this research finds that the banking crisis in Indonesia is not caused by the execution of financial deregulation in Indonesia but by the increas e in macroeconomic instability, foreign debt of commercial banks, and the discount rate of certificate of Bank Indonesia The fourth part of the thesis analyzes the effect of financial deregulation on the development of bond market This research finds that financial deregulation of October 27, 1988 has a positive effect on the development of the bond market Other factors that also influence the development of bond market in Indonesia is real income , nominal interest rate , the emergence of rating agency and the secondary market of bond. Other than analyzing the development of the bond market, this research also examines th e determinant of the price of bond using cross sectional data of the year 2000. The r e sult shows that rating grade, type and common risk of bond influence the price of bond. Includes tables
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| D 328 | PSB lt.2 - Karya Akhir | 1 |
| Penerbit | Kuala Lumpur University of Malaya., 2004 |
|---|---|
| Edisi | - |
| Subjek | Economic growth Monetary policy Monetary economics Interest rate Savings Bond market Financial regulation |
| ISBN/ISSN | - |
| Klasifikasi | - |
| Deskripsi Fisik | xvi, 401 p. : ill. ; 30 cm. |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |