Download fulltext HTML
Sukmana, R., & Adnan Fauzi Wicaksana, A. (2019). Monetary Policy and Inflation in Indonesia: The Role of Dual Banking System. KnE Social Sciences, 3(13), 71–84. https://doi.org/10.18502/kss.v3i13.4196

https://doi.org/10.18502/kss.v3i13.4196

statistics

  • 555 Abstract Views
  • 316 PDF Views
  • 0 HTML Views

authors

  • R Sukmana
    No author data available.
  • A Adnan Fauzi Wicaksana
    No author data available.

Published Date

  • Mar 31, 2019

Monetary Policy and Inflation in Indonesia: The Role of Dual Banking System

KnE Social Sciences / The 2nd International Conference on Islamic Economics, Business, and Philanthropy (2nd ICIEBP) / Pages 71–84

Abstract

This study aims to examine the effect of monetary policy to the inflation rate in Indonesia from January 2011 to December 2015 via conventional and sharia systems. Vector Error Correction Model (VECM) is adopted for that purpose. The result shows that in the long run, conventional monetary policy transmission has an effect on inflation rate in Indonesia. Interbank money market variable has negative and significant influence on the inflation rate. While the loan to deposit ratio variable does not. On the Islamic side, the results show that in the long run, Islamic monetary policy transmission has a negative effect on inflation in Indonesia and Islamic money market has significant positive effect.


 


 


Keywords: Efficiency, Zakat Institution, Data Envelopment Analysis: Islamic economics, transmission of sharia and conventional monetary policy, inflation, VECM, vector error correction model.

References
[1] Ajija, S. R. 2011. Smart Ways to Master EViews.Salemba Empat. Jakarta


[2] Anshori, M. and Iswati, S. 2009. Textbook of Powerful Research Methodology. Surabaya: Airlangga University Press.


[3] Capra. 2000. Islamic Monetary System, Translation by Ikhwan Abidin Basri. Cahyono, Ari. 2009. Effect of Macroeconomic Indicators on Party Funds Third and Financing Islamic Bank Mandiri. Thesis. University Indonesia


[4] Karim, Adiwarman A. 2001. Islamic Economics: A Contemporary Study. Jakarta: Gema Insani Press


[5] Mustafa, Edwin.2007. Introduction to Jakarta’s Exclusive Islamic Economy: Kencana Prenada Media Group


[6] Rahardjo, Prathama and Manurung, Mandala. 2001. Macroeconomic Theory, University of Indonesia Faculty of Economics Publisher


[7] Rusydiana, Aam S, 2009 Sharia Transmission Mechanism at Double Monetary in Indonesia


[8] Sugiyono. 2012. Qualitative Quantitative Research Methods and R & B. Bandung: Alfabeta.


[9] Warjiyo, P and J. Agung. 2002. Transmission Mechanism of Monetary Policy in Indonesia.


[10] Directorate of Economic Research and Monetary Policy. Bank Indonesia, Jakarta.


[11] Triono, Dwi Condro. 2003. Economic Growth Versus Economic Equity. Irtikaz. Yogyakarta.