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What is Money Demand and Velocity in Indonesia about?

This study analyzes the determinants of money demand and the velocity of money in Indonesia using ARDL methodology from 2000Q1 to 2017Q4. The findings indicate that economic growth and the growth rate of the rupiah/USD significantly affect M2 in both the long and short term, with an observed increasing trend in the velocity of money. The research emphasizes the importance of understanding money demand for effective monetary policy formulation.

Author

galihwicaksana1909

Language

EN