Does Money Matter in Indonesia? Revisiting Divisia Money

Puah, Chin Hong and Jean, Maggie Tang May and Shazali, Bin Abu Mansor and Brahmana, Rayenda Khresna (2015) Does Money Matter in Indonesia? Revisiting Divisia Money. Journal of International Finance and Economics, 15 (2). pp. 7-12. ISSN 1555-6336

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In this study, we applied an ARIMA model of a long-run monetary neutrality test proposed by Fisher and Seater (1993) to empirically examine the monetary neutrality proposition in Indonesia using different definition of monetary aggregates for the period of 1981:Q1 to 2011:Q4. Both monetary aggregates (simple-sum money and Divisia money) are found to be non-neutral, indicating that Divisia money can be considered to be used as a monetary policy variable in Indonesia.

Item Type: Article
Uncontrolled Keywords: Long-run Monetary Neutrality, Divisia Money, ARIMA Model,unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak.
Subjects: H Social Sciences > HG Finance
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Faculties, Institutes, Centres > Faculty of Economics and Business
Depositing User: Gani
Date Deposited: 14 Oct 2019 09:02
Last Modified: 14 Oct 2019 09:02

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