Effectiveness of Monetary Transmission Through Interest Rate and Exchange Rate Channels on Indonesia’s Inflation Rate
The purpose of this research is to determine the effectiveness of monetary transmission on inflation in Indonesia through the interest rate and the exchange rate channel over a period of 2015Q1-2022Q4. This research analysis approach uses the variance decomposition and Vector Error Correction Model...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Universitas Airlangga, Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis
2023-12-01
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| Series: | JIET (Jurnal Ilmu Ekonomi Terapan) |
| Subjects: | |
| Online Access: | https://e-journal.unair.ac.id/JIET/article/view/51741 |
| _version_ | 1797397110330490880 |
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| author | Anggie Bayu Setyawan Wasiaturrahma Wasiaturrahma Anas Iswanto Anwar |
| author_facet | Anggie Bayu Setyawan Wasiaturrahma Wasiaturrahma Anas Iswanto Anwar |
| author_sort | Anggie Bayu Setyawan |
| collection | DOAJ |
| description | The purpose of this research is to determine the effectiveness of monetary transmission on inflation in Indonesia through the interest rate and the exchange rate channel over a period of 2015Q1-2022Q4. This research analysis approach uses the variance decomposition and Vector Error Correction Model (VECM) methods. Quantitative methods are utilized, and the estimation tool used is Eviews 12. The findings of the variance decomposition analysis in this research indicate that to reduce inflation in Indonesia, monetary transmission through exchange rates is more effective than through the interest rate channel. |
| first_indexed | 2024-03-09T01:05:16Z |
| format | Article |
| id | doaj.art-fd5df5ff59fd4285864764685eeb5338 |
| institution | Directory Open Access Journal |
| issn | 2541-1470 2528-1879 |
| language | English |
| last_indexed | 2024-03-09T01:05:16Z |
| publishDate | 2023-12-01 |
| publisher | Universitas Airlangga, Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis |
| record_format | Article |
| series | JIET (Jurnal Ilmu Ekonomi Terapan) |
| spelling | doaj.art-fd5df5ff59fd4285864764685eeb53382023-12-11T11:03:29ZengUniversitas Airlangga, Departemen Ilmu Ekonomi Fakultas Ekonomi dan BisnisJIET (Jurnal Ilmu Ekonomi Terapan)2541-14702528-18792023-12-018223625910.20473/jiet.v8i2.5174149900Effectiveness of Monetary Transmission Through Interest Rate and Exchange Rate Channels on Indonesia’s Inflation RateAnggie Bayu Setyawan0Wasiaturrahma Wasiaturrahma1https://orcid.org/0000-0001-6055-0790Anas Iswanto Anwar2https://orcid.org/0000-0002-1801-8730Department of Economics, Universitas Airlangga, Surabaya, IndonesiaDepartment of Economics, Universitas Airlangga, Surabaya, IndonesiaDepartment of Economics, Universitas Hasanuddin, Makassar, IndonesiaThe purpose of this research is to determine the effectiveness of monetary transmission on inflation in Indonesia through the interest rate and the exchange rate channel over a period of 2015Q1-2022Q4. This research analysis approach uses the variance decomposition and Vector Error Correction Model (VECM) methods. Quantitative methods are utilized, and the estimation tool used is Eviews 12. The findings of the variance decomposition analysis in this research indicate that to reduce inflation in Indonesia, monetary transmission through exchange rates is more effective than through the interest rate channel.https://e-journal.unair.ac.id/JIET/article/view/51741monetary transmissioninterest rate channelsexchange rate channelsinflation |
| spellingShingle | Anggie Bayu Setyawan Wasiaturrahma Wasiaturrahma Anas Iswanto Anwar Effectiveness of Monetary Transmission Through Interest Rate and Exchange Rate Channels on Indonesia’s Inflation Rate JIET (Jurnal Ilmu Ekonomi Terapan) monetary transmission interest rate channels exchange rate channels inflation |
| title | Effectiveness of Monetary Transmission Through Interest Rate and Exchange Rate Channels on Indonesia’s Inflation Rate |
| title_full | Effectiveness of Monetary Transmission Through Interest Rate and Exchange Rate Channels on Indonesia’s Inflation Rate |
| title_fullStr | Effectiveness of Monetary Transmission Through Interest Rate and Exchange Rate Channels on Indonesia’s Inflation Rate |
| title_full_unstemmed | Effectiveness of Monetary Transmission Through Interest Rate and Exchange Rate Channels on Indonesia’s Inflation Rate |
| title_short | Effectiveness of Monetary Transmission Through Interest Rate and Exchange Rate Channels on Indonesia’s Inflation Rate |
| title_sort | effectiveness of monetary transmission through interest rate and exchange rate channels on indonesia s inflation rate |
| topic | monetary transmission interest rate channels exchange rate channels inflation |
| url | https://e-journal.unair.ac.id/JIET/article/view/51741 |
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