Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)

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Analysis of Macroeconomic Variable Shocks and Monetary Policy on Real Effective Exchange Rates in Indonesia

Authors
Vadli Sastrio, Sri Ulfa Sentosa, Mohammad Aliman Shahmi
Corresponding Author
Vadli Sastrio
Available Online 27 November 2020.
DOI
10.2991/aebmr.k.201126.017How to use a DOI?
Keywords
cointegration, ECM, exchange rate, monetary policy
Abstract

This study examines the effect of monetary policy and macroeconomic variable shocks on the real effective exchange rate in Indonesia. The analysis model used is the cointegration of Johansen-Juselius and error correction models (ECM). Data is used by time series from 2008Q1 to 2018Q4. The findings in this study are in the long term monetary policy through interest rate policy (BIRate), economic growth, and economic openness significantly affect the real effective exchange rate in Indonesia. In the short term, interest rate policy (BIRate) and economic growth significantly affect the real effective exchange rate. Economic openness creates a disruption to the real effective exchange rate equilibrium in the short term but moves back towards its equilibrium in the long run.

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 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
27 November 2020
ISBN
978-94-6239-280-9
ISSN
2352-5428
DOI
10.2991/aebmr.k.201126.017How 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  - Vadli Sastrio
AU  - Sri Ulfa Sentosa
AU  - Mohammad Aliman Shahmi
PY  - 2020
DA  - 2020/11/27
TI  - Analysis of Macroeconomic Variable Shocks and Monetary Policy on Real Effective Exchange Rates in Indonesia
BT  - Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)
PB  - Atlantis Press
SP  - 136
EP  - 142
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201126.017
DO  - 10.2991/aebmr.k.201126.017
ID  - Sastrio2020
ER  -