scholarly journals PENGARUH JUMLAH UANG BEREDAR TERHADAP INFLASI DAN SUKU BUNGA, SERTA TERHADAP INVESTASI DAN PERTUMBUHAN EKONOMI DI INDONESIA

2020 ◽  
Vol 30 (1) ◽  
pp. 39
Author(s):  
Karari Budi Prasasti ◽  
Edy Juwono Slamet
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Money Supply ◽  
Least Square ◽  
Series Data ◽  
The Government ◽  
The One ◽  
Two Stages ◽  
Macro Variables

Introduction: Monetary policy is one of the main instruments of macroeconomic policy. The government with monetary policy is able toinfluence the level of economic growth, employment, and the rate of inflation. The one of main monetary policy is controlling the money supply. Money supply has a widespread impact on other macro variables. This study analyzes the effect of the money supply to variable inflationand interest rates, as well as the effects of inflation and interest rates to investment and economic growth in Indonesia. Methods: This study used analysis of TSLS (Two Stages Least Square). The data used in Times Series. Data for the period 1973 until 2012.Results: From the tests showed that there was a significant effect ofmoney supply to inflation and interest rates. Inflation and interest rateshas no effect on investment in Indonesia partially. While there was thesimultaneous effect of inflation and interest rates to Investment inIndonesia. The research showed that significantly the investmentinfluence economic growth in Indonesia.Conclusion and suggestion: Research indicates that the variable in the money supply directly or indirectly have an impact on economic growthin a country, thus appropriate monetary policy should be given such a broad impact in an economy.

scholarly journals Economic Growth, Policies and Influencing Factors: The Case of Albania

2016 ◽  
Vol 4 (1) ◽  
pp. 107
Author(s):  
Eleni Vangjeli ◽  
Anila Mancka
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Interest Rates ◽  
Empirical Analysis ◽  
Influencing Factors ◽  
Fiscal Policies ◽  
The Government ◽  
High Level ◽  
The Empirical Analysis

Monetary and fiscal policies are two policies that the government could use to keep a high level of growth, with a low inflancion. Fiscal policy has its initial impact on the stock market, while monetary policy in market assets. But, given that the goods and active markets are closely interrelated, both policies, monetary as well as fiscal have impact on the economy, increasing the level of product through the reduction of interest rates. In our paper we will show how functioning monetary and fiscal policies. But also in our paper we will analyze the different factors which have affected the economic growth of the country. The focus of our study is the graphical and empirical analysis of economic growth, policies and influencing factors. For the empirical analysis we have used data on the economic growth in Albania for 1996– 2014.

scholarly journals An econometric analysis of the effectiveness of fiscal and monetary policies in India

2021 ◽  
Author(s):  
Anand Nadar
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Money Supply ◽  
Series Data ◽  
Monetary Policies ◽  
Indian Economy ◽  
Long Run ◽  
Short Run ◽  
Bound Test

This study investigatesthe effectiveness of fiscal policy and monetary policy in India. We collected thetime series data for India ranging from 1960 to 2019 from World Development Indicator (WDI). Weapplied the bound test co-integration approach to check the long-run relationship between fiscalpolicy, monetary policy, and economic growth in the context of Indian economy. The short-run andlong-run effects of fiscal policy and monetary policy have been estimated using ARDL models. Theresults showed that there is a long-run relationship between fiscal and monetary policies witheconomic growth. The estimated short-run coefficients indicated that a few immediate short runimpacts of fiscal and monetary policies are insignificant. However, the short-run impacts becomesignificant as time passes. The long-run results suggested that the long-run impact of both fiscal andmonetary policies on economic growth are positive and significant. More specifically, the GDP levelincreases if the money supply and government expenditure increase (Expansionary fiscal andmonetary policies). On the other hand, the GDP level decreasesif the money supply and governmentexpenditure decrease (contractionary fiscal and monetary policies). Therefore, this studyrecommends to use expansionary policies to spur the Indian economy.

scholarly journals Analysis of Effect Macro Variable on International Trade of Indonesia

2016 ◽  
Vol 6 (2) ◽  
pp. 228
Author(s):  
Evania Rahma Octavia ◽  
Dwi Wulandari
Keyword(s):  
International Trade ◽  
Exchange Rate ◽  
Interest Rates ◽  
Money Supply ◽  
Price Index ◽  
Time Series Data ◽  
Consumer Price Index ◽  
Series Data ◽  
The Exchange Rate ◽  
Macro Variables

This study aims to determine the effect of macro variables which include Indonesia's real gross domestic income, money supply, consumer price index and interest rates on international trade mediated by the exchange rate of rupiah against the dollar. This type of research is descriptive research with quantitative approach. Determination of the sample based on quarterly time series data 2010-2014. This study uses path analysis. The results showed domestic gross product, the money supply, and interest rates together  have a significant effect on the exchange rate but the consumer price index do not have significant effect on the exchange rate. The results also show that the exchange rate has no significant effect on imports and exports. 

scholarly journals Comparison of the impact of lending and inflation rates on economic growth in Vietnam and China

2020 ◽  
Vol 15 (4) ◽  
pp. 193-203
Author(s):  
Doan Van Dinh
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Time Series Data ◽  
Close Correlation ◽  
Least Square ◽  
Series Data ◽  
Lending Rate ◽  
Lending Rates ◽  
The Impact

Inflation and lending rates are two important macroeconomic indicators as they affect economic growth. The correlation between the inflation rate and the lending rate in Vietnam and China is analyzed to determine whether the lending rate causes inflation or not. An ordinary least square model (OLS) and a unit root test are applied to check the correlation and cointegration related to the inflation and lending rates to avoid spurious regression. The research time series data were collected from 1996 to 2017. The correlation of Vietnam’s variables is 56%, the correlation of China’s variables is 55%, which is a close correlation. The empirical cointegration test results for Vietnam and China are suitable for two research models. The relationship between these two indicators influences each other. In the short term, inflation stimulates economic growth through loose monetary policy through the lending rate. However, in the long term, if the money supply increases continuously, inflation will slow economic growth and increase bad debt. The empirical results are to make accurate forecasts and determine monetary policy for micro-managers who set the goal of sustainable economic growth and have a strategy for economic development in the short and long term.

scholarly journals Impact of Monetary Policy on Economic Growth: Empirical Evidence in Vietnam

2019 ◽  
Vol 5 (10) ◽  
Author(s):  
Tang My Sang
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Money Supply ◽  
Negative Impact ◽  
Positive Impact ◽  
Secondary Data ◽  
The Impact

Through the secondary data collected from 2009 to 2018, the research used Var method to test the impact of monetary policy on economic growth in Vietnam. The results show that there is a relationship between the variables of monetary policy and economic growth, in which the money supply has a positive impact at a high significant level, interest rates have a negative impact on Vietnam economic growth. From the results obtained, the research proposed solutions for operating monetary policy.

scholarly journals Analysis of the Viability of Fiscal and Monetary Policies on the Recovery of Household Consumption Expenditures Because of the Covid-19 Pandemic

2021 ◽  
Vol 3 (1) ◽  
Author(s):  
Fahrul Riza ◽  
William Wiriyanata
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Government Spending ◽  
Positive Impact ◽  
Household Consumption ◽  
Series Data ◽  
Consumption Expenditure ◽  
Consumption Expenditures ◽  
Long Run ◽  
The Government

The Covid-19 outbreak disrupted economic activity in almost all countries. The Indonesian economy entered a recession phase as a result of the continued contraction in economic growth in the second and third quarters of 2020. According to Keynesian economic theory, the combination of fiscal policy and monetary policy was more effective in recovering the economy from the crisis, this study aims to measure the effect of government spending, money supply, inflation and interest rates on aggregate household consumption expenditure. This study used a quantitative method, using monthly time series data from January 2015 to December 2020. The data were analyzed using the Vector Error Correction Model (VECM). The results show that government spending has a negative impact on household aggregate expenditure in the long run meanwhile interest rate has a positive impact on household consumption expenditure. Inflation do not affect aggregate household consumption expenditure, both in the short and long term. The results of the analysis are useful for evaluating the policies taken by the government to overcome the economic crisis due to the spread of the Covid-19 outbreak. The government increases aggregate expenditure to cover the decline in household aggregate consumption expenditure due to a decrease in household real income. Then expansionary monetary policy in the long run will increase aggregate demand. Therefore, the Ministry of Finance together with Bank Indonesia needs to design other policies that will have a positive impact on economic recovery in the short term. This study has not included other macro indicators that affect household consumption expenditures such as unemployment, taxes and the household marginal propensity to saving (MPS). Keywords: Household Aggregate Expenditure; Government Expenditure; Inflation; VECM

scholarly journals Education Equality and Economic Growth in Indonesia

JEJAK ◽  
2021 ◽  
Vol 14 (1) ◽  
pp. 167-182
Author(s):  
Ambuy Sabur ◽  
Khusaini Khusaini ◽  
Heni Cahya Ramdani
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Dynamic Models ◽  
Time Series Data ◽  
Least Square ◽  
Series Data ◽  
Education Equality ◽  
Investment Capital ◽  
The Government ◽  
Equality In Education

Last decade, Indonesia's economic growth experienced a downward trend. The study examines the role of investment, equality in education, poverty, income inequality, and regime to economic growth in Indonesia. We used time-series data between 1970-2017. It was obtained from BPS and World Bank (Indodapur) publications. The model used is the Weighted Least Square Regression (WLS). The results showed the factors that contributed significantly to increasing Indonesia's economic growth were education equality, poverty, and income inequality. While investment/capital, economic transparency, and the regime did not significantly contribute to increasing economic growth. Expanding access to education for high school or equivalent is important by the Government, including the development of school infrastructure in remote areas and teacher distribution. The Government should maintain the poverty trend that continues to decline. The future study dynamic models look at the long-term relationships related to education equality, distribution of income, and poverty on economic growth.

scholarly journals Kebijakan Fiskal dalam Trend Pembangunan Ekonomi Jangka Panjang Indonesia

2020 ◽  
pp. 1
Author(s):  
I K. G. Bendesa ◽  
Ni Putu Wiwin Setyari
Keyword(s):  
Economic Growth ◽  
Exchange Rates ◽  
Interest Rates ◽  
Poor Quality ◽  
Tax Revenue ◽  
Infrastructure Development ◽  
The Poor ◽  
The Government ◽  
Macro Variables

The role of taxes in financing Indonesia's economic development is very dominant and increasingly important. Even in its history, the role of taxes when a government was built has been carried out in various forms, such as levies in the agriculture, trade and others. Although the role of tax is important, the level of tax revenue in Indonesia is still relatively low. The focus of the government on infrastructure development is very reasonable because Indonesian infrastructure is still lacking despite the poor quality. With the improvement and development of infrastructure, economic growth is expected to increase. This research will analyze the role of tax in Indonesia's development, especially for two decades. The role of taxes can be seen in different periods, namely before the crisis and after the crisis of 1998. The role of taxes in fiscal policy is related to other macro variables, such as interest rates, exchange rates, foreign trade, and government budgets. Linking the role of tax to this variable results in recommendations for Indonesia's development, specifically the role of tax in two different periods.

Money Supply and Private Sector Funding in Nigeria: A Multi-Variant Study

2020 ◽  
Vol 4 (1) ◽  
pp. 24-41
Author(s):  
Zaagha Alexander Sulaiman
Keyword(s):  
Private Sector ◽  
Central Bank ◽  
Interest Rates ◽  
Money Supply ◽  
Time Series Data ◽  
Least Square ◽  
Series Data ◽  
Medium Scale ◽  
Integration Test ◽  
Causality Tests

This study examined the effect of money supply on private sector funding in Nigeria. The purpose of the study was to examine the extent to which monetary policy affect private sector funding in Nigeria. Time series data was sourced from Central Bank of Nigeria Statistical Bulletin from 1985-2018. Credit to private sector, credit to core private sector and credit to small and medium scale enterprises sector was used as dependent variables while narrow money supply, broad money supply, large money supply, private sector demand deposit was used as independent variables. Ordinary Least Square (OLS), Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used to conduct the investigations and analysis. The empirical findings revealed that money supply explains 82.1 percent variation on credit to core private sector, 85.2 percent and 23.4 percent of the variation in credit to private sector and credit to small and medium scale enterprises sector. The study conclude that money supply has significant relationship with credit to private sector, credit to core private sector and credit to small and medium scale enterprises sector. From the findings, the study recommends that Central Bank of Nigeria should induce the variations of the amount of money changes through the nominal interest rates. That the monetary authorities should ensure adequate quantity of money supply that positively affect private sector funding in Nigeria.

scholarly journals The Effect of Some Economic Variables on Economic Growth in Indonesia Period 2010- 2017

2019 ◽  
Vol 9 (1) ◽  
pp. 757-761
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Interest Rates ◽  
Money Supply ◽  
Secondary Data ◽  
Economic Factors ◽  
Regression Methods ◽  
Exchange Rate Fluctuations ◽  
The World Bank ◽  
Macro Variables

Exchange rate fluctuations are caused by interactions between economic factors and non-economic factors. The purpose of this study is to see the effect of the fluctuations in the rupiah exchange rate on economic growth along with several macro variables in Indonesia. The analytical method used in this study is multiple regression methods, namely testing the hypothesis about the effect of rupiah exchange rate fluctuations (KURS), inflation (INF), Foreign Direct Investment (FDI), Indonesian bank certificate interest rate (SBI), and Money Supply (JUB ) to the Indonesian economy (GRDP). The data used in this study are secondary data taken from Bank Indonesia, the Central Bureau of Statistics, and the World Bank. The research method used is multiple linear regrelsi method using eviews application. The results of this study indicate the exchange rate, inflation and the money supply have a negative direction with economic growth while foreign investment (FDI) and interest rates on Bank Indonesia Certificates (SBI) have a positive and significant direction towards economic growth in Indonesia.

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