DETERMINANT OF THE AMOUNT OF MONEY CIRCULATING IN INDONESIA (REVIEW MONEY SUPPLY (M2) 2006-2011)
Abstract
One element in the government's monetary policy to stabilize the economy through the
financial sector is the money supply. The main objective of this study was to analyze the
determinants of the money supply in Indonesia in 2006.1-2011.4 period. The variables used
are: Bank Indonesia Certificate rate (SBI), exchange rate, and gross domestic product (GDP).
The data used in this study is time series data in the quarterly period from 2006.1 to 2011.4,
using multiple linear regression. The results of this analysis states that only the variable
exchange rate is not significant. While Bank Indonesia Certificate rate (SBI) and gross
domestic product (GDP)are significant effect on the money supply (M2).
financial sector is the money supply. The main objective of this study was to analyze the
determinants of the money supply in Indonesia in 2006.1-2011.4 period. The variables used
are: Bank Indonesia Certificate rate (SBI), exchange rate, and gross domestic product (GDP).
The data used in this study is time series data in the quarterly period from 2006.1 to 2011.4,
using multiple linear regression. The results of this analysis states that only the variable
exchange rate is not significant. While Bank Indonesia Certificate rate (SBI) and gross
domestic product (GDP)are significant effect on the money supply (M2).
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