Image of Test on the long run neutrality of money in Indonesia diajukan oleh Mochamad Pasha

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Test on the long run neutrality of money in Indonesia diajukan oleh Mochamad Pasha

This study is conducted to assess whether or not money is long run neutral in Indonesia. In assessing the long run neutrality of money in Indonesia, the Fisher and Seater (1993) is employed. Using quarterly data on monetary aggregates, M0 and M2, and real GDP over the period of 1983:1 to 2002:4. It is found that M0 is not neutral with respect to real GDP in the long run and M2 is neutral with respect to real GDP in the long run. This result indicates that in the long run, variations in M0 have an effect on real GDP and variations in M2 do not have an effect towards real GDP in the long run and, by definition, have a proportional relationship with the price level. There are, of course, several limitations. First, the existence of shocks other than shocks arising from the money stock, which may affect the test outcome for M0. Secondly, the exclusion of dummy variables. Finally, the heavy reliance to unit root test displayed by this framework. Having mentioned the limitations, it is suffice to say that the Fisher and Seater (1993) framework proves that M2 is neutral and fails to prove that M0 is neutral.Includes references & CD

Ketersediaan

Call NumberLocationAvailable
4954PSB lt.2 - Karya Akhir1
Penerbit Depok Fakultas Ekonomi Universitas Indonesia.,
Edisi -
Subjek Monetary policy
Monetary theory
ISBN/ISSN -
Klasifikasi -
Deskripsi Fisik xi, 119 p. diagrs 30 cm & app
Info Detail Spesifik -
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