The Influence of Monetary Instrument toward Money Demand M2 under Dual Banking System in Indonesia Period 2015-2018

Imam Haryadi, Vinny Kurniati

2019

Abstract

Money demand holds an important role in monetary policy’s behaviour in overall economic activities. Moreover, Bank Indonesia use monetary instrument which transform to dual banking system. This research has purpose to analyze the influence of monetary instruments toward money demand M2 under dual banking system and to know the monetary instrument more stable and faster in influencing money demand M2 under dual banking system. The data used in this research was secondary data earned from Indonesia Banking Statistics (SPI), Sharia Banking Statistics (SPS), Indonesian Financial Statistic (SEKI) and Financial Service Authority (OJK). using the time series data from January 2015 till December 2018. In order to achieve the purpose, this research used Vector Autoregression/Vector Error Correction Model. The research concluded that the influence of monetary instruments toward M2 under dual banking system are significant. Based on VECM result, conclude that Islamic monetary instruments are more significant influenced than conventional one toward M2. based on IRF result, conventional monetary instrument more stable and faster than Islamic monetary instrument which FASBI and SRR more stable and faster than FASBIS and SRRISL in influencing money demand M2. But, SBIS is more stable and faster than SBI to influence Islamic M2 and increase economic growth.

Paper Citation

in Harvard Style

Haryadi I. and Kurniati V. (2019). The Influence of Monetary Instrument toward Money Demand M2 under Dual Banking System in Indonesia Period 2015-2018. In Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF, ISBN 978-989-758-473-2, pages 46-51. DOI: 10.5220/0010114600002898

in Bibtex Style

@conference{7th aicif19,
author={Imam Haryadi and Vinny Kurniati},
title={The Influence of Monetary Instrument toward Money Demand M2 under Dual Banking System in Indonesia Period 2015-2018},
booktitle={Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF,},
year={2019},
pages={46-51},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010114600002898},
isbn={978-989-758-473-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF,
TI - The Influence of Monetary Instrument toward Money Demand M2 under Dual Banking System in Indonesia Period 2015-2018
SN - 978-989-758-473-2
AU - Haryadi I.
AU - Kurniati V.
PY - 2019
SP - 46
EP - 51
DO - 10.5220/0010114600002898