ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI PERMINTAAN UANG BROAD MONEY DI INDONESIA : PENDEKATAN VECTOR ERROR CORRECTION MODEL PERIODE 2010Q1 -2019Q1
Abstract
This research aims to know the determinants of money demand function in Indonesia periode 2010:Q1-2019:Q1. The analysis method used in this research in Vector Error Correction Model (VECM) with variables used in this research is demand for money (M2) as a dependent variable, Gross Domestic Product (GDP), Exchange rates, and inflation as an independent variables. The result showed that the variable Gross Domestic Product (GDP) is not significantly influences money demand. Exchange rate, and inflation positively and significantly affect the demand for money (M2). The results in the long term demand for money (M2) in Indonesia postively and significantly influenced by variables Gross Domestic product (GDP) and the inflation. While the exchange rate and variable interest rates have negative effect to money demand.