Pengujian Netralitas Uang dan Inflasi Jangka Panjang di Indonesia

Arintoko ()
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Arintoko: Universitas Jenderal Soedirman

Bulletin of Monetary Economics and Banking, 2011, vol. 14, issue 1, 79-118

Abstract: This paper investigates long-run neutrality of money and inflation in Indonesia, with due consideration to the order of integration, exogeneity, and cointegration of the money stock-real output and the money stock-price, using annual time-series data. The Fisher-Seater methodology is used to do the task in this research. The empirical results indicate that evidence rejected the long-run neutrality of money (both defined as M1 and M2) with respect to real GDP, showing that it is inconsistent with the classical and neoclassical economics. However, the positive link between the money and price in long run holds for money defined as M1 rather than M2, which consistent with these theories. In particular, besides the positive effect to long-run inflation, monetary expansions have long-run positive effect on real output in the Indonesian economy.

Keywords: long-run neutrality of money; inflation; unit root; exogeneity; cointegration (search for similar items in EconPapers)
JEL-codes: C32 E31 E51 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:14:y:2011:i:1d:p:79-118

DOI: 10.21098/bemp.v14i1.457

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