Financial Liberalization and Divisia Money Demand in Indonesia
Money demand function that turns out to be unstable due to the financial liberalization has affected the effectiveness of monetary policy that utilizes monetary targeting as policy target. Thus, Divisia monetary aggregate that is consistent with the economic theory has been used to examine the money...
| Main Authors: | , , , , |
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| Format: | Article |
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American Scientific Publishers
2017
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| Online Access: | http://ir.unimas.my/id/eprint/17172/ |
| _version_ | 1848838228261470208 |
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| author | Sianturi, Ronald Hasudungan Tanjung, Ahmad Feri Leong, Choi-Meng Puah, Chin Hong Brahmana, Rayenda Khresna |
| author_facet | Sianturi, Ronald Hasudungan Tanjung, Ahmad Feri Leong, Choi-Meng Puah, Chin Hong Brahmana, Rayenda Khresna |
| author_sort | Sianturi, Ronald Hasudungan |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | Money demand function that turns out to be unstable due to the financial liberalization has affected the effectiveness of monetary policy that utilizes monetary targeting as policy target. Thus, Divisia monetary aggregate that is consistent with the economic theory has been used to examine the money demand function in Indonesia. Monetization is also included as a determinant of money demand to measure the financial deepening. A stable M2 money demand has been identified via the use of Divisia M2 money and the inclusion of monetization variable. Monetary targeting can serve as alternative policy target for Indonesia and there is a possibility for a return to monetary targeting in Indonesia. |
| first_indexed | 2025-11-15T06:52:13Z |
| format | Article |
| id | unimas-17172 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| last_indexed | 2025-11-15T06:52:13Z |
| publishDate | 2017 |
| publisher | American Scientific Publishers |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-171722017-10-03T02:20:16Z http://ir.unimas.my/id/eprint/17172/ Financial Liberalization and Divisia Money Demand in Indonesia Sianturi, Ronald Hasudungan Tanjung, Ahmad Feri Leong, Choi-Meng Puah, Chin Hong Brahmana, Rayenda Khresna HG Finance Money demand function that turns out to be unstable due to the financial liberalization has affected the effectiveness of monetary policy that utilizes monetary targeting as policy target. Thus, Divisia monetary aggregate that is consistent with the economic theory has been used to examine the money demand function in Indonesia. Monetization is also included as a determinant of money demand to measure the financial deepening. A stable M2 money demand has been identified via the use of Divisia M2 money and the inclusion of monetization variable. Monetary targeting can serve as alternative policy target for Indonesia and there is a possibility for a return to monetary targeting in Indonesia. American Scientific Publishers 2017 Article PeerReviewed Sianturi, Ronald Hasudungan and Tanjung, Ahmad Feri and Leong, Choi-Meng and Puah, Chin Hong and Brahmana, Rayenda Khresna (2017) Financial Liberalization and Divisia Money Demand in Indonesia. Advanced Science Letters, 23 (4). pp. 3155-3158. ISSN 1936-6612 http://www.ingentaconnect.com/contentone/asp/asl/2017/00000023/00000004/art00126 DOI: https://doi.org/10.1166/asl.2017.7683 |
| spellingShingle | HG Finance Sianturi, Ronald Hasudungan Tanjung, Ahmad Feri Leong, Choi-Meng Puah, Chin Hong Brahmana, Rayenda Khresna Financial Liberalization and Divisia Money Demand in Indonesia |
| title | Financial Liberalization and Divisia Money Demand in Indonesia |
| title_full | Financial Liberalization and Divisia Money Demand in Indonesia |
| title_fullStr | Financial Liberalization and Divisia Money Demand in Indonesia |
| title_full_unstemmed | Financial Liberalization and Divisia Money Demand in Indonesia |
| title_short | Financial Liberalization and Divisia Money Demand in Indonesia |
| title_sort | financial liberalization and divisia money demand in indonesia |
| topic | HG Finance |
| url | http://ir.unimas.my/id/eprint/17172/ http://ir.unimas.my/id/eprint/17172/ http://ir.unimas.my/id/eprint/17172/ |