THE ANALYSIS OF INSTRUMENT INTERDEPENDENCY OF MONETARY POLICY TO INDONESIAS ECONOMIC GROWTH

Fitrawati, (2016) THE ANALYSIS OF INSTRUMENT INTERDEPENDENCY OF MONETARY POLICY TO INDONESIAS ECONOMIC GROWTH. In: Proceeding AISTEEL The First Annual International Seminar on Transformative Education and Educational Leadership, 19 November 2016, Medan.

[img]
Preview
Text
Cover.pdf - Published Version

Download (1MB) | Preview
[img]
Preview
Text
Proceedings AISTEEL_27.pdf - Published Version

Download (635kB) | Preview
Official URL: http://aisteel.unimed.ac.id/wp-content/uploads/201...

Abstract

This research excavates the instrument interdependency of monetary policy to Indonesia’s economic growth during 2000-2011. Series time data were conducted that were collected from Bank Indonesia, Central Bureau of Statistics and other related sources. The methods used in this research were Vector Autoregression (VAR) that was continued by Structural Vector Aut0regression (SVAR). Shock was employed to the monetary instrument in order to predict the effect on Indonesia’s economic growth and to display the effect of shock resulted in short, medium and long-term. There were some conditions need to be completed within this approach namely the test of unit root and integration degree in which it was to discover whether the data used was stationer or not. If it is not stationary, the regression resulted is not efficient. Co integration is one of the approaches that is often used in economic research to avoid counterfeit regression, in terms of putting more indolence variables (lag). The research findings conclude that import shock (ε IMP) in short-term dominantly contributed to the growth (GROW), while in medium and long-term, the variance of domestic interest rate level (ε rDOM) dominantly contributed to growth (GROW). The policy of increasing the shock OMO 5 % in 2010 was not effective to reduce the number of unemployment, to press the rate of inflation and to increase the economic development. Then, it is important to conduct another policy simulation to discover the result on target policy, for instance by degrading the domestic interest rate level to encourage the local investor to invest their funds in the country. This is an effective policy for long period so that the economic development keeps growing. Furthermore, the coordination between monetary and fiscal policies must be fully controlled to attain the ultimate achievement.

Item Type: Conference or Workshop Item (Paper)
Keywords: Instrument of Monetary Policy; VAR; SVAR; Indonesias Economic Growt
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD72 Economic growth, development, planning
Depositing User: Mrs Gusti Lisa Utami
Date Deposited: 25 Jan 2018 08:54
URI: http://digilib.unimed.ac.id/id/eprint/28501

Actions (login required)

View Item View Item