Logo

Pusat Sumber Belajar FEB UI

  • FAQ
  • Berita
  • Rooms
  • Bantuan
  • Area Anggota
  • Pilih Bahasa :
    Bahasa Inggris Bahasa Indonesia
  • Search
  • Google
  • Advanced Search
*sometimes there will be ads at the top, just scroll down to the results of this web
No image available for this title

Text

The role of interest rates and provincial monetary aggregate in maintaining inflation in Indonesia

Utama, Chandra - ; Wijaya, Miryam B.L. - ; Lim, Charvin - ;

Monetary policy may employ interest rate or money supply to derive the assigned national inflation target. In this manner, most studies investigate monetary policy effectiveness using national data. However, based on the idea that inflation is a regional phenomenon, the application of provincial data is more appropriate in explaining the relationship between monetary instrument and inflation. This study elaborates the impact of changes in provincial money supply, BI Rate (interest rates of central bank), and PUAB (money market interest rates) to regional inflation in Hybrid New Keynesian Phillips Curve (HNKPC) framework. This study employs Generalized Method of Moments (GMM) techniques on panel data of 32 provinces from 2005-III to 2013-III. The data is classified into 4 groups, which are Java-Bali (W1), Sumatera (W2), Kalimantan-Sulawesi (W3), and Papua-Maluku-Nusa Tenggara (W4). The estimation result shows that each monetary instrument has diverging effectiveness in different regions. Provincial monetary aggregate is only effective in Sumatera, while BI Rate can manage inflation in Sumatera and Kalimantan-Sulawesi. PUAB, on the other hand, is significantly affecting inflation in almost all Indonesian regions, except Kalimantan- Sulawesi. We conclude that interest rate (BI rate and PUAB) is a more appropriate instrument, compared to provincial monetary aggregate, to control provincial inflation in Indonesia..


Ketersediaan

Call NumberLocationAvailable
PSB lt.2 - Karya Akhir1
Penerbit: Bulletin of Monetary Economics and Banking 2017
Edisi-
SubjekIndonesia
Monetary policy
Interest rate
Regional inflation
ISBN/ISSN-
Klasifikasi-
Deskripsi Fisik-
Info Detail Spesifik-
Other Version/RelatedTidak tersedia versi lain
Lampiran BerkasTidak Ada Data

Pencarian Spesifik
Where do you want to share?