skip to main content

Multiplier and Velocity of Money Relationship of Cartal and Electronic in Indonesia 2009.Q1-2018.Q4

*Elitna Br Barus  -  Departemen IESP Fakultas Ekonomika dan Bisnis Universitas Diponegoro, Indonesia
Fransiscus Xaverius Sugiyanto  -  Departemen IESP Fakultas Ekonomika dan Bisnis Universitas Diponegoro, Indonesia
Open Access Copyright 2021 Elitna Br Barus
Creative Commons License This work is licensed under a Creative Commons Attribution 4.0 International License.

Citation Format:
Abstract

This research explain about the impact of electronic money and currency on money multiplier M1 and velocity of money M1 with VECM analyzing method. data used in this reserach are secondary data, it used from 2009 quarter I until 2018 quarter IV. There are 4 measurements that are used to measure money multiplier, electronic money, currency ratio, excess reserve ratio, reserve requirement ratio. To measure velocity of money there are 5 measurements that are used, electronic money, currency, inflation, product domestic product, and interest rate SBI. The result found that in the long term electronic money and currency affected money multiplier M1. On the velocity of money model electronic money and currency affected velocity of money M1 on the long term. The result of impulse response function (IRF) on money multiplier M1 show that electronic money has a positive correlation, while the currency ratio has a negative correlation, on the velocity of money model both electronic money and velocity of money showed a negative correlation. In variance decomposition found that electronic money has a huge contribution to affect money multiplier model and velocity of money model M1. Thus the results of the study can be concluded that electronic money affected both money multiplier M1 and velocity of money M1. The monetary authorities should take electronic money into consideration as crucial variable in the money supply to maintain the stability of money supply.

Fulltext View|Download
Keywords: Electronic Money, Currency, Money Multiplier M1,Velocity of Money M1, Vector Error Correction Model (VECM)

Article Metrics:

  1. Bank for International Settlements (BIS). 1996. Implications for Central Banks of the Development of Electronic Money. Basel: Bank for International Settlements
  2. Bank Indonesia.2019. Statistika Ekonomi dan Keuangan Indonesia. Diakses di website Bank Indonesia (www.bi.go.id) pada tanggal 12 Juni 2018
  3. Basuki, A. T. (2008). APLIKASI MODEL VAR DAN VECM DALAM EKONOMI. Universitas Muhammadiyah Yogyakarta
  4. Chen Ling., Jiang Mei., & Zhao Shu-Yu . (2012). An Empirical Study on The Affect Electronic Money Has On Money Multiplier Analysis Based on Chinese Data from 1990 -2009. International Conference on Management Science and Engineering
  5. Mishkin, Frederic S. (2009). Ekonomi Uang Perbankan, dan Pasar Keuangan, Edisi 8 Buku 1.Jakarta: Salemba Empat
  6. Rui, Qin. (2017). The Impact of Money Supply and Electronic Money : Empirical Evidence From Central bank in China. State University of New York
  7. Solikin dan Suseno. (2002). Uang : Pengertian, Penciptaan dan Peranannya Dalam Perekonomian. Jakarta : Pusat Pendidikan dan Studi Kebanksentralan Bank Indonesia

Last update:

No citation recorded.

Last update:

No citation recorded.