Analisis dampak aliran arus modal dan resistensi bank sentral terhadap nilai tukar riil : pendekatan error correction model

Deskripsi

The rapid growth of international financial liberalization has increased capital flows among countries. International financial system has developed into an efficient global market and therefore has created an important role for developing countries. Eventough large capital investment has brought benefits for national economy, it yet creates challenges to economic stability. The purpose of the research is to analyze the impact of large private capital inflows and central bank?s resistance behaviour to Indonesian real effective exchange rate (REER). The analysis discovered that private capital inflows positively affect REER, while central bank?s resistance does not affect REER both in the long run and short run. This research uses Ordinary Least Square method to analyze the long run effects and Error Correction Model method for the short run effects of the variables and the short run?s adjustment process to its long run equilibrium.Ada tabel