Proceedings of the 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019)

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Analysis of the Monetary Transmission Mechanism Channels in Indonesia and Effect in Regional Economics North Sumatera (A Projection with Stochastis Simulation-VAR Model)

Authors
Dede Ruslan, M. Nasir, Ina Namora
Corresponding Author
Dede Ruslan
Available Online 10 March 2020.
DOI
10.2991/aebmr.k.200305.091How to use a DOI?
Keywords
monetary policy, interest rate, exchange rate, VAR model
Abstract

This paper analyses the monetary transmission mechanism in Indonesia. Transmission channels can be classified into five sections, namely interest rate channel, assets price channel, exchange rate channel, credit channel and expectation channel. It tries to answer to the question: how is the behavior and effectiveness of the exchange rate and interest rate channel of the monetary policy transmission mechanism in influencing on the performance of the regional economics north Sumatera. Time series analysis such as unit root test, VAR, impulse response function and variance decomposition, are used to estimate the influence of exchange rate and interest rate on the real economic activity. The results of econometric analysis with VAR model suggest that monetary policy in Indonesia had a significant influence on the real economic activity through the interest rate and exchange rate channel. The results represent that interest rate and exchange rate channel are effective in influencing on the performance of the Regional Economic North Sumatera. Moreover findings indicate that interest rate and exchange rate have any influence on the real economy activity

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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Volume Title
Proceedings of the 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
10 March 2020
ISBN
978-94-6252-921-2
ISSN
2352-5428
DOI
10.2991/aebmr.k.200305.091How to use a DOI?
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/).

Cite this article

risenwbib
TY  - CONF
AU  - Dede Ruslan
AU  - M. Nasir
AU  - Ina Namora
PY  - 2020
DA  - 2020/03/10
TI  - Analysis of the Monetary Transmission Mechanism Channels in Indonesia and Effect in Regional Economics North Sumatera (A Projection with Stochastis Simulation-VAR Model)
BT  - Proceedings of the 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019)
PB  - Atlantis Press
SP  - 357
EP  - 367
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200305.091
DO  - 10.2991/aebmr.k.200305.091
ID  - Ruslan2020
ER  -