IS LONG-RUN MONETARY NEUTRAL? EVIDENCE FROM INDONESIA
This paper examines the long-run monetary neutrality in Indonesia, mainly using annual time-series during 1970-2007. It uses Fisher-Seater methodology to analyze the research problems. Particular attention is given to integration, exogeneity, and cointegration properties of the money stock and real...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universitas Islam Indonesia
2011-09-01
|
| Series: | Economic Journal of Emerging Markets |
| Subjects: | |
| Online Access: | https://www.hmj.accounting.uii.ac.id/JEP/article/view/6422 |
| _version_ | 1811325135137800192 |
|---|---|
| author | Arintoko Arintoko |
| author_facet | Arintoko Arintoko |
| author_sort | Arintoko Arintoko |
| collection | DOAJ |
| description | This paper examines the long-run monetary neutrality in Indonesia, mainly using annual time-series during 1970-2007. It uses Fisher-Seater methodology to analyze the research problems. Particular attention is given to integration, exogeneity, and cointegration properties of the money stock and real output. Unit-root, causality, and cointegration tests are used to identify these properties. The empirical results provide evidence to reject the long-run neutrality of money (both M1 and M2) with respect to real GDP, showing that it is inconsistent with the classical and neoclassical economics. In particular, government injections of money have long-run positive effect on real output in macroeconomy. |
| first_indexed | 2024-04-13T14:27:46Z |
| format | Article |
| id | doaj.art-c8f83f6302ce41ea93fe4b0a71509b62 |
| institution | Directory Open Access Journal |
| issn | 2086-3128 2502-180X |
| language | English |
| last_indexed | 2024-04-13T14:27:46Z |
| publishDate | 2011-09-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj.art-c8f83f6302ce41ea93fe4b0a71509b622022-12-22T02:43:16ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2011-09-0113IS LONG-RUN MONETARY NEUTRAL? EVIDENCE FROM INDONESIAArintoko Arintoko0Universitas Jenderal SoedirmanThis paper examines the long-run monetary neutrality in Indonesia, mainly using annual time-series during 1970-2007. It uses Fisher-Seater methodology to analyze the research problems. Particular attention is given to integration, exogeneity, and cointegration properties of the money stock and real output. Unit-root, causality, and cointegration tests are used to identify these properties. The empirical results provide evidence to reject the long-run neutrality of money (both M1 and M2) with respect to real GDP, showing that it is inconsistent with the classical and neoclassical economics. In particular, government injections of money have long-run positive effect on real output in macroeconomy.https://www.hmj.accounting.uii.ac.id/JEP/article/view/6422Monetary neutralityunit rootexogeneitygovernment injections of money |
| spellingShingle | Arintoko Arintoko IS LONG-RUN MONETARY NEUTRAL? EVIDENCE FROM INDONESIA Economic Journal of Emerging Markets Monetary neutrality unit root exogeneity government injections of money |
| title | IS LONG-RUN MONETARY NEUTRAL? EVIDENCE FROM INDONESIA |
| title_full | IS LONG-RUN MONETARY NEUTRAL? EVIDENCE FROM INDONESIA |
| title_fullStr | IS LONG-RUN MONETARY NEUTRAL? EVIDENCE FROM INDONESIA |
| title_full_unstemmed | IS LONG-RUN MONETARY NEUTRAL? EVIDENCE FROM INDONESIA |
| title_short | IS LONG-RUN MONETARY NEUTRAL? EVIDENCE FROM INDONESIA |
| title_sort | is long run monetary neutral evidence from indonesia |
| topic | Monetary neutrality unit root exogeneity government injections of money |
| url | https://www.hmj.accounting.uii.ac.id/JEP/article/view/6422 |
| work_keys_str_mv | AT arintokoarintoko islongrunmonetaryneutralevidencefromindonesia |