Cover Image

Analysis of effectiveness of monetary policy transmission in the dual monetary system in Indonesia / Taufiq Chaidir and Akhyani Wulandini

Bank Indonesia (BI) as the monetary authority, was given a new responsibility, namely to carry out a dual monetary policy (MP) namely conventional and sharia MP. In relation to the current transmission mechanism of monetary policy (TMMP), the pattern of sharia MP transmission taken by BI is similar...

Full description

Saved in:
Bibliographic Details
Main Authors: Chaidir, Taufiq, Wulandini, Akhyani
Format: Conference or Workshop Item
Language:English
Published: 2019
Subjects:
Banking
Money
Online Access:https://ir.uitm.edu.my/id/eprint/53678/1/53678.pdf
https://ir.uitm.edu.my/id/eprint/53678/
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.uitm.ir.53678
record_format eprints
spelling my.uitm.ir.536782023-03-16T02:07:23Z https://ir.uitm.edu.my/id/eprint/53678/ Analysis of effectiveness of monetary policy transmission in the dual monetary system in Indonesia / Taufiq Chaidir and Akhyani Wulandini Chaidir, Taufiq Wulandini, Akhyani Banking Money Bank Indonesia (BI) as the monetary authority, was given a new responsibility, namely to carry out a dual monetary policy (MP) namely conventional and sharia MP. In relation to the current transmission mechanism of monetary policy (TMMP), the pattern of sharia MP transmission taken by BI is similar to conventional. Therefore, BI is required to provide uniformity of policy signals within the MP framework. Thus, the pattern of sharia MP transmission can use the same pattern and channel as conventional MP transmission (Solikin, et al. 2018). MP framework covers the implementation and strategy of MP. The framework is generally related to achieving the ultimate goal of price stability, economic growth, and expansion of employment opportunities, and strategies to achieve them (exchange rate targeting, monetary targeting, inflation targeting, implicit but not explicit anchor) (Warjiyo, 2004). TMMP works require time (time lag). The time lag of each channel can be different from the others. The exchange rate channel usually works faster because the impact of changes in interest rates to exchange rates works very fast. The conditions of the financial and banking sectors also have a significant influence on MP transmission speed. MP effectiveness is the extent to which MP taken by the central bank (whatever its form) has a positive impact on the economy and society, in the sense that it can increase economic growth; can improve people's welfare; can increase employment opportunities; can increase state foreign exchange earnings; and give influence to other macro policies. MP effectiveness is measured by two indicators, namely how much speed or deadline (time lag) and how the strength of the variables in each channel responds to the changes (shock) monetary policy instruments (rSBIS) and other variables until the realization of the MP goal. (Natsir, 2008). The Noviasri study (2012) revealed that in controlling Islamic MP inflation more effective than conventional. 2019 Conference or Workshop Item NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/53678/1/53678.pdf Analysis of effectiveness of monetary policy transmission in the dual monetary system in Indonesia / Taufiq Chaidir and Akhyani Wulandini. (2019) In: Academic Conference on Social Sciences 2019. (Submitted)
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Banking
Money
spellingShingle Banking
Money
Chaidir, Taufiq
Wulandini, Akhyani
Analysis of effectiveness of monetary policy transmission in the dual monetary system in Indonesia / Taufiq Chaidir and Akhyani Wulandini
description Bank Indonesia (BI) as the monetary authority, was given a new responsibility, namely to carry out a dual monetary policy (MP) namely conventional and sharia MP. In relation to the current transmission mechanism of monetary policy (TMMP), the pattern of sharia MP transmission taken by BI is similar to conventional. Therefore, BI is required to provide uniformity of policy signals within the MP framework. Thus, the pattern of sharia MP transmission can use the same pattern and channel as conventional MP transmission (Solikin, et al. 2018). MP framework covers the implementation and strategy of MP. The framework is generally related to achieving the ultimate goal of price stability, economic growth, and expansion of employment opportunities, and strategies to achieve them (exchange rate targeting, monetary targeting, inflation targeting, implicit but not explicit anchor) (Warjiyo, 2004). TMMP works require time (time lag). The time lag of each channel can be different from the others. The exchange rate channel usually works faster because the impact of changes in interest rates to exchange rates works very fast. The conditions of the financial and banking sectors also have a significant influence on MP transmission speed. MP effectiveness is the extent to which MP taken by the central bank (whatever its form) has a positive impact on the economy and society, in the sense that it can increase economic growth; can improve people's welfare; can increase employment opportunities; can increase state foreign exchange earnings; and give influence to other macro policies. MP effectiveness is measured by two indicators, namely how much speed or deadline (time lag) and how the strength of the variables in each channel responds to the changes (shock) monetary policy instruments (rSBIS) and other variables until the realization of the MP goal. (Natsir, 2008). The Noviasri study (2012) revealed that in controlling Islamic MP inflation more effective than conventional.
format Conference or Workshop Item
author Chaidir, Taufiq
Wulandini, Akhyani
author_facet Chaidir, Taufiq
Wulandini, Akhyani
author_sort Chaidir, Taufiq
title Analysis of effectiveness of monetary policy transmission in the dual monetary system in Indonesia / Taufiq Chaidir and Akhyani Wulandini
title_short Analysis of effectiveness of monetary policy transmission in the dual monetary system in Indonesia / Taufiq Chaidir and Akhyani Wulandini
title_full Analysis of effectiveness of monetary policy transmission in the dual monetary system in Indonesia / Taufiq Chaidir and Akhyani Wulandini
title_fullStr Analysis of effectiveness of monetary policy transmission in the dual monetary system in Indonesia / Taufiq Chaidir and Akhyani Wulandini
title_full_unstemmed Analysis of effectiveness of monetary policy transmission in the dual monetary system in Indonesia / Taufiq Chaidir and Akhyani Wulandini
title_sort analysis of effectiveness of monetary policy transmission in the dual monetary system in indonesia / taufiq chaidir and akhyani wulandini
publishDate 2019
url https://ir.uitm.edu.my/id/eprint/53678/1/53678.pdf
https://ir.uitm.edu.my/id/eprint/53678/
_version_ 1761622264726421504
score 13.211869

Similar Items