The Impact of E-Money Diffusion on the Monetary Policy Effectiveness: Evidence from Indonesia

DOI

10.2991/aebmr.k.200606.040How to use a DOI?

Keywords

E-Money, Inflation, National Output, Interest Rate Policy, Monetary Policy

Abstract

The aims of research is to analyse the impact of e-money diffusion on the effectivity of monetary policy in Indonesia. The analytical method used is Bayesian estimation with the observation period of time series 2009.1 - 2017.12. Some of the variables used in the study are Gross Domestic Product (GDP), policy rates, inflation rates, number of electronic money transactions, total bank loans, Non-Performing Loans (NPL) to measure credit risk. The study results show that e-money has significant impact on the economic growth at the beginning of the period but declined towards a long-term balance. E-money has a significant influence on rising inflation and followed by interest rate responses that also have the same trend but do not have a significant impact in driving credit growth and credit risk. So the risk of financial system instability remains intact despite increasingly massive digital transformations.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yulia Indrawati
AU  - Adhitya Wardhono
AU  - Ciplis Gema Qori’ah
AU  - M. Abd. Nasir
PY  - 2020
DA  - 2020/06/09
TI  - The Impact of E-Money Diffusion on the Monetary Policy Effectiveness: Evidence from Indonesia
BT  - Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019)
PB  - Atlantis Press
SP  - 237
EP  - 241
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200606.040
DO  - 10.2991/aebmr.k.200606.040
ID  - Indrawati2020
ER  -