The Role of Interest Rates and Provincial Monetary Aggregate in Maintaining Inflation in Indonesia

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dc.contributor.author Utama, Chandra
dc.contributor.author Wijaya, Miryam B.L.
dc.contributor.author Lim, Charvin
dc.date.accessioned 2017-11-06T05:14:52Z
dc.date.available 2017-11-06T05:14:52Z
dc.date.issued 2017
dc.identifier.issn 1410-8046
dc.identifier.uri http://hdl.handle.net/123456789/3851
dc.description BULLETIN OF MONETARY ECONOMICS AND BANKING;Vol.19 No.3, Januari 2017
dc.description.abstract Inflation is a regional phenomenon hence the use of provincial data might be more appropriate on explaining the relationship between monetary policy and inflation. This paper analyzes the impact of changes in provincial money supply, the policy rate, and the interbank rate on regional inflation, within the framework of Hybrid New Keynesian Phillips Curve (HNKPC). This paper employs Generalized Method of Moments (GMM) on panel data of 32 provinces from 2005-III to 2014-IV. The estimation result shows that provincial monetary aggregate influence inflation significantly only in Sumatera. Furthermore, the policy fate affects the inflation in Sumatera and Kalimantan-Sulawesi. Using the interbank money rate, the result shows this rate also affect the inflation in most of the region except Kalimantan-Sulawesi. These findings show the price-based policy is more significant on affecting the provincial inflation compared to the provincial money supply. en_US
dc.description.uri www.journalbankindonesia.org
dc.language.iso en en_US
dc.publisher Central Banking Research Department, Bank Indonesia en_US
dc.relation.ispartofseries BULLETIN OF MONETARY ECONOMICS AND BANKING;Vol.19 No.3, Januari 2017
dc.subject MONETARY POLICY en_US
dc.subject REGIONAL INFLATION en_US
dc.subject HYBRID NKPC en_US
dc.title The Role of Interest Rates and Provincial Monetary Aggregate in Maintaining Inflation in Indonesia en_US
dc.type Journal Articles en_US


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