DUAL MONE AL MONETARY POLICY AND INCOME INEQU Y POLICY AND INCOME INEQUALITY IN INDONESIA

Emira Arefa Aji () and Raditya Sukmana ()
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Emira Arefa Aji: Universitas Airlangga, Indonesia
Raditya Sukmana: Uinversitas Airlangga, Indonesia

Bulletin of Monetary Economics and Banking, 2023, vol. 26, issue 3, 539-560

Abstract: This paper examines the effect of Indonesia’s dual monetary policy on income inequality. This issue of inequality in Indonesia remains significant, and failure to address it could lead to a major economic and social conflict. The studies of monetary policy on income inequality are still inconclusive. In Indonesia, there are limited literatures that show the effect of monetary policy on income inequality. This study shows that both monetary policies significantly affect income inequality in Indonesia where in the long run, Islamic monetary policy seems to not affecting the inequality. Hence, it can be concluded that the Islamic monetary system should be encourage to improve the inequality in Indonesia.

Keywords: Conventional monetary policy; Islamic monetary policy; Income inequality; Indonesia; SDGs no. 10 (search for similar items in EconPapers)
JEL-codes: E52 E58 I31 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:26:y:2023:i:3g:p:539-560

DOI: 10.59091/2460-9196.2128

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