ANALYSIS OF FACTORS AFFECTING THE DEMAND FOR MONEY IN INDONESIA
Keywords:
Inflation, Exchange Rate, Interest Rate, Money Supply
Abstract
Demand for money is defined as people's tendency to save money for various purposes, such as transactions, anticipation, and speculation. Many factors related to economic, social, political and psychological conditions influence the demand for money. This research aims to evaluate the impact of various variables on money demand in Indonesia from 2018 to 2023. This research uses an Error Correction Model (ECM), which can measure short-term and long-term correlations between the variables studied. The money supply (M2) is the dependent variable of this research, and the independent variables are interest rates, inflation and the US dollar exchange rate against the rupiah. The results show that except for inflation, all independent variables influence money demand significantly in the long run. In the short term, only the rupiah exchange rate has a significant influence on the demand for money.
References
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Bitrus, Y. P. (2011). The determinants of the demand for money in developed and developing countries. Journal of Economics and International Finance, 3(15), 771–779. https://doi.org/10.5897/JEIF11.118
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Dou, X. (2018). The determinants of money demand in China. Cogent Economics and Finance, 6(1). https://doi.org/10.1080/23322039.2018.1564422
Duca, J. V., & VanHoose, D. D. (2004). Recent developments in understanding the demand for money. Journal of Economics and Business, 56(4). https://doi.org/10.1016/j.jeconbus.2004.01.001
Dewanta, A., & Putri, A. I. N. (2022). Pengaruh E-Money terhadap permintaan uang pada sebelum dan sesudah Covid-19. Jurnal Kebijakan Ekonomi Dan Keuangan, 1(2), 186–197. https://doi.org/10.20885/jkek.vol1.iss2.art5
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Gandhi, E. A., Pasaribu, E., Ekaputri, R. A., & Febriani, R. E. (2022). Investasi Asing Langsung dan Pertumbuhan Ekonomi: Perbandingan Empiris Indonesia dan Singapura. Ecoplan, 5(2). https://doi.org/10.20527/ecoplan.v5i2.563
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Ivanovski, K., & Churchill, S. A. (2019). Economic policy uncertainty and demand for money in Australia. Applied Economics, 51(41). https://doi.org/10.1080/00036846.2019.1593936
Kavaliou, A. V. (2021). Menger and keynes: On the demand for money and uncertainty. Voprosy Ekonomiki, 2021(2). https://doi.org/10.32609/0042-8736-2021-2-85-101
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Mukhtar, S. (2018). Analisis Faktor - Faktor Yang Mempengaruhi Permintaan Uang Di Indonesia Periode 2001-2015 Dengan Pendekatan Error Correction Model (Ecm). Ecoplan : Journal of Economics and Development Studies, 1(2), 65–72. https://doi.org/10.20527/ecoplan.v1i2.9
Nurmetri, S., & Adnan, M. (2022). Analisis Permintaan Uang di Indonesia. Syntax Literate ; Jurnal Ilmiah Indonesia, 7(9), 15404–15416. https://doi.org/10.36418/syntax-literate.v7i9.14328
Nursiba. (2015). Analisis Faktor-Faktor Yang Mempengaruhi Permintaan Uang di Sulawesi Selatan. Jurnal Minds, 34–34.
Pasaribu, E. (2021). Analisis Kinerja Keuangan Pemerintah Kota Bengkulu: Pendekatan Derajat Desentralisasi Fiskal. Akuntabilitas. https://doi.org/10.29259/ja.v15i1.12054
Pasaribu, E., Febriani, R. E., & Septriani. (2020). Efektivitas Transmisi Kebijakan Moneter Indonesia Jalur Nilai Tukar Pada Masa Pandemi Covid-19. Pareto, 3(3(2)), 35–50. https://doi.org/https://doi.org/10.32663/pareto.v3i2.1493
Prasetyo, A. S. (2018). Determinants of Demand For Money and The Velocity of Money in Indonesia. Journal of Developing Economies, 3(2). https://doi.org/10.20473/jde.v3i2.10464
Prasetyo, A. S. (2018). Determinants of Demand For Money and The Velocity of Money in Indonesia. Journal of Developing Economies, 3(2), 10. https://doi.org/10.20473/jde.v3i2.10464
Polontalo, F., Rotinsulu, T. O., & Maramis, M. T. . (2018). Analisis Faktor – Faktor Yang Mempengaruhi Permintaan Uang Di Indonesia Periode 2010.1 – 2017.4. Jurnal Berkala Ilmiah Efisiensi, 18(3), 35–46.
Riyandi, G. (2012). permintaan uang di Indonesia. Jesp, 1(1), 39–60.
Skinner, A. S. (2007). David Hume: Principles of political economy. In The Cambridge Companion to Hume. https://doi.org/10.1017/ccol0521382734.008
Sukirno, S. (2016). Teori Pengantar Makroekonomi. Rajawali Press.
Sahadudheen I. (2012). Demand for Money and Exchange Rate: Evidence for Wealth Effect in India. Undergraduate Economic Review, 8(1), 1–15. http://digitalcommons.iwu.edu/uer/vol8/iss1/15
Setiadi, I. O. (2013). Analisis faktor-faktor yang mempengaruhi permintaan uang di Indonesia tahun 1999 : Q1 - 2010 : Q4 dengan pendekatan error corection models (Ecm). Economics Development Analysis Journal, 2(1), 1–9.
Twinoburyo, E. N., & Odhiambo, N. M. (2018). Monetary policy and economic growth: A review of international literature. In Journal of Central Banking Theory and Practice (Vol. 7, Issue 2, pp. 123–137). Walter de Gruyter GmbH. https://doi.org/10.2478/jcbtp-2018-0015
Tümtürk, O. (2017). Stability of Money Demand Function in Turkey. Business and Economics Research Journal, 8(1), 35–48.
Wijaya, A., Nurjanana, N., & Kurniawan, E. A. (2022). THE FLOW OF MONEY DEMAND IN INDONESIA: WHAT DRIVES IT? Asian Journal of Economic Modelling, 10(4). https://doi.org/10.55493/5009.v10i4.4693
Wang, X., Zheng, T., & Zhu, Y. (2014). Money-output Granger causal dynamics in China. Economic Modelling, 43, 192–200. https://doi.org/10.1016/j.econmod.2014.08.004
Widodo A. (2015). Faktor-Faktor Makroekonomi Yang Mempengaruhi Permintaan Uang Di Indonesia. Jurnal Ekonomi Dan Studi Pembangunan, 16(1).
Yulimar. (2015). analisis permintaan uang kuasi di Indonesia periode 200-2014. FEKON, 2(2), 1–14.
Zulkarnaen, W., Fitriani, I., & Yuningsih, N. (2020). Pengembangan Supply Chain Management Dalam Pengelolaan Distribusi Logistik Pemilu Yang Lebih Tepat Jenis, Tepat Jumlah Dan Tepat Waktu Berbasis Human Resources Competency Development Di KPU Jawa Barat. Jurnal Ilmiah MEA (Manajemen, Ekonomi, & Akuntansi), 4(2), 222-243. https://doi.org/10.31955/mea.vol4.iss2.pp222-243.
Ahmad Ridha, Nurjannah, & Ratna Mutia. (2021). Analisis Permintaan Uang di Indonesia: Pendekatan Autoegressive Distributed lag (Ardl). Jurnal Samudra Ekonomika, 5(2), 152–160. https://doi.org/10.33059/jse.v5i2.4273
Arwin, A., Muhammad, S., & Masbar, R. (2019). Analisis Permintaan Dan Penawaran Uang Di Indonesia. Jurnal Perspektif Ekonomi Darussalam, 5(1), 1–8. https://doi.org/10.24815/jped.v5i1.14564
Bahmani-Oskooee, M., & Nayeri, M. M. (2020). Policy uncertainty and the demand for money in Japan. Review of Economic Analysis, 12(1). https://doi.org/10.15353/rea.v12i1.1692
Behera, J. (2014). Inflation and its Impact on Economic Growth: Evidence from Six South Asian Countries. ISSN.
Bitrus, Y. P. (2011). The determinants of the demand for money in developed and developing countries. Journal of Economics and International Finance, 3(15), 771–779. https://doi.org/10.5897/JEIF11.118
Doan Van, D. (2020). Money supply and inflation impact on economic growth. Journal of Financial Economic Policy, 12(1). https://doi.org/10.1108/JFEP-10-2018-0152
Dou, X. (2018). The determinants of money demand in China. Cogent Economics and Finance, 6(1). https://doi.org/10.1080/23322039.2018.1564422
Duca, J. V., & VanHoose, D. D. (2004). Recent developments in understanding the demand for money. Journal of Economics and Business, 56(4). https://doi.org/10.1016/j.jeconbus.2004.01.001
Dewanta, A., & Putri, A. I. N. (2022). Pengaruh E-Money terhadap permintaan uang pada sebelum dan sesudah Covid-19. Jurnal Kebijakan Ekonomi Dan Keuangan, 1(2), 186–197. https://doi.org/10.20885/jkek.vol1.iss2.art5
Fisher, I. (n.d.). The Purchasing Power of Money, its Determination and Relation to Credit, Interest and Crises [1911]. Choice Reviews Online, 45(02), 1–330. https://doi.org/10.5860/choice.45-0637
Folarin, O. E., & Asongu, S. A. (2023). Financial liberalization and long-run stability of money demand in Nigeria. African Governance and Development Institute, 70234, 1–24. http://clok.uclan.ac.uk/25161/1/25161 Education-in-the-Diffusion-of-Knowledge-with-Mobile-for-Inclusive-dev.pd.pdf
Gandhi, E. A., Pasaribu, E., Ekaputri, R. A., & Febriani, R. E. (2022). Investasi Asing Langsung dan Pertumbuhan Ekonomi: Perbandingan Empiris Indonesia dan Singapura. Ecoplan, 5(2). https://doi.org/10.20527/ecoplan.v5i2.563
Hall, S. G., Swamy, P. A. V. B., & Tavlas, G. S. (2012). Milton Friedman, the demand for money, and the ECB’s monetary policy strategy. Federal Reserve Bank of St. Louis Review, 94(3). https://doi.org/10.20955/r.94.153-186
Hayati, I. (2015). Analisis Permintaan dan Penawaran Uang di Indonesia. QE Jurnal, 2(1), 8–18.
Ivanovski, K., & Churchill, S. A. (2019). Economic policy uncertainty and demand for money in Australia. Applied Economics, 51(41). https://doi.org/10.1080/00036846.2019.1593936
Kavaliou, A. V. (2021). Menger and keynes: On the demand for money and uncertainty. Voprosy Ekonomiki, 2021(2). https://doi.org/10.32609/0042-8736-2021-2-85-101
Kerdpitak, C. (2020). Demand for money function in case of philippines: An empirical analysis. Research in World Economy, 11(1). https://doi.org/10.5430/rwe.v11n1p220
Keynes, J.M. (1936). The General Theory of Employment, Interest and Money. Macmillan.
Lebre DE Freitas, M. (2022). International currency substitution and the demand for money in the euro area. Economic Modelling, 117. https://doi.org/10.1016/j.econmod.2022.106064
Meyer, P. A., & Neri, J. A. (1975). A Keynes-Friedman Money Demand Function. American Economic Review, 65(4).
Minella, A. (2003). Monetary policy and inflation in Brazil (1975-2000): a VAR estimation. Revista Brasileira de Economia, 57(3), 605–635. https://doi.org/10.1590/s0034-71402003000300005
Masitho, O. D. (2019). Analisis Faktor-Faktor yang Mempengaruhi Permintaan Uang di Indonesia Tahun 2010 - 2014. Jurnal Akuntansi Dan Keuangan, 2(2), 40–57.
Mukhtar, S. (2018). Analisis Faktor - Faktor Yang Mempengaruhi Permintaan Uang Di Indonesia Periode 2001-2015 Dengan Pendekatan Error Correction Model (Ecm). Ecoplan : Journal of Economics and Development Studies, 1(2), 65–72. https://doi.org/10.20527/ecoplan.v1i2.9
Nurmetri, S., & Adnan, M. (2022). Analisis Permintaan Uang di Indonesia. Syntax Literate ; Jurnal Ilmiah Indonesia, 7(9), 15404–15416. https://doi.org/10.36418/syntax-literate.v7i9.14328
Nursiba. (2015). Analisis Faktor-Faktor Yang Mempengaruhi Permintaan Uang di Sulawesi Selatan. Jurnal Minds, 34–34.
Pasaribu, E. (2021). Analisis Kinerja Keuangan Pemerintah Kota Bengkulu: Pendekatan Derajat Desentralisasi Fiskal. Akuntabilitas. https://doi.org/10.29259/ja.v15i1.12054
Pasaribu, E., Febriani, R. E., & Septriani. (2020). Efektivitas Transmisi Kebijakan Moneter Indonesia Jalur Nilai Tukar Pada Masa Pandemi Covid-19. Pareto, 3(3(2)), 35–50. https://doi.org/https://doi.org/10.32663/pareto.v3i2.1493
Prasetyo, A. S. (2018). Determinants of Demand For Money and The Velocity of Money in Indonesia. Journal of Developing Economies, 3(2). https://doi.org/10.20473/jde.v3i2.10464
Prasetyo, A. S. (2018). Determinants of Demand For Money and The Velocity of Money in Indonesia. Journal of Developing Economies, 3(2), 10. https://doi.org/10.20473/jde.v3i2.10464
Polontalo, F., Rotinsulu, T. O., & Maramis, M. T. . (2018). Analisis Faktor – Faktor Yang Mempengaruhi Permintaan Uang Di Indonesia Periode 2010.1 – 2017.4. Jurnal Berkala Ilmiah Efisiensi, 18(3), 35–46.
Riyandi, G. (2012). permintaan uang di Indonesia. Jesp, 1(1), 39–60.
Skinner, A. S. (2007). David Hume: Principles of political economy. In The Cambridge Companion to Hume. https://doi.org/10.1017/ccol0521382734.008
Sukirno, S. (2016). Teori Pengantar Makroekonomi. Rajawali Press.
Sahadudheen I. (2012). Demand for Money and Exchange Rate: Evidence for Wealth Effect in India. Undergraduate Economic Review, 8(1), 1–15. http://digitalcommons.iwu.edu/uer/vol8/iss1/15
Setiadi, I. O. (2013). Analisis faktor-faktor yang mempengaruhi permintaan uang di Indonesia tahun 1999 : Q1 - 2010 : Q4 dengan pendekatan error corection models (Ecm). Economics Development Analysis Journal, 2(1), 1–9.
Twinoburyo, E. N., & Odhiambo, N. M. (2018). Monetary policy and economic growth: A review of international literature. In Journal of Central Banking Theory and Practice (Vol. 7, Issue 2, pp. 123–137). Walter de Gruyter GmbH. https://doi.org/10.2478/jcbtp-2018-0015
Tümtürk, O. (2017). Stability of Money Demand Function in Turkey. Business and Economics Research Journal, 8(1), 35–48.
Wijaya, A., Nurjanana, N., & Kurniawan, E. A. (2022). THE FLOW OF MONEY DEMAND IN INDONESIA: WHAT DRIVES IT? Asian Journal of Economic Modelling, 10(4). https://doi.org/10.55493/5009.v10i4.4693
Wang, X., Zheng, T., & Zhu, Y. (2014). Money-output Granger causal dynamics in China. Economic Modelling, 43, 192–200. https://doi.org/10.1016/j.econmod.2014.08.004
Widodo A. (2015). Faktor-Faktor Makroekonomi Yang Mempengaruhi Permintaan Uang Di Indonesia. Jurnal Ekonomi Dan Studi Pembangunan, 16(1).
Yulimar. (2015). analisis permintaan uang kuasi di Indonesia periode 200-2014. FEKON, 2(2), 1–14.
Zulkarnaen, W., Fitriani, I., & Yuningsih, N. (2020). Pengembangan Supply Chain Management Dalam Pengelolaan Distribusi Logistik Pemilu Yang Lebih Tepat Jenis, Tepat Jumlah Dan Tepat Waktu Berbasis Human Resources Competency Development Di KPU Jawa Barat. Jurnal Ilmiah MEA (Manajemen, Ekonomi, & Akuntansi), 4(2), 222-243. https://doi.org/10.31955/mea.vol4.iss2.pp222-243.
Published
2024-03-28
How to Cite
Fatihah, V., & Pasaribu, E. (2024). ANALYSIS OF FACTORS AFFECTING THE DEMAND FOR MONEY IN INDONESIA. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 8(1), 1977-1991. https://doi.org/10.31955/mea.v8i1.3897
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