Monetary Policy Analysis Towards Inflation and Capital Market Performance

Ahmad Rodoni ()
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Ahmad Rodoni: Jalan Raya Srengseng RT.001/05, No.6 (Praktek dr Rosmiyati) Kec. Kembangan, Jakarta Barat

Jurnal Ekonomi Malaysia, 2006, vol. 40, 27-46

Abstract: This research is designed to analysze the monetary policy towards inflation and capital market performance during 1998-2004 period. The objectives of this research are: first, to analyze the direct influence of interest rate, base money, and exchange rate toward inflation and also to analyze the directinfluence of interest rate, best money, and exchange rate toward capital market performance. Second, to analyze the indirect influence of interest rate, base money and exchange rate through inflation toward return market. Path Analysis is used the research method. The result indicates that there have been some significant effects between interest rate, base money, and exchange rate toward inflation and return market. Indirect influence of interest rate, base money, and exchange rate toward return market through inflation arrives at 4.176%. Overall, the direct and indirect influence of macroeconomic variables toward return market reach 22.941%

Keywords: capital market performance; inflation; monetary policy; path analysis (search for similar items in EconPapers)
Date: 2006
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