ANALISIS KURS DAN MONEY SUPPLY DI INDONESIA

Abstract

ABSTRACT

This  article focused on  analyze (1) Effect of the money supply, income,
domestic interest rates, inflation and the trade balance to the exchange rate in
Indonesia. (2) The influence of domestic interest rates, output and  the exchange
rate on the money supply in Indonesia. Data used time series of (I year kuartal 2000 –
IV year kuartal 2010). This article use analyzer model equation of simultaneous with
method of Two Stage Least Squared (TSLS). The result of research concludes that (1)
the money supply have a significant and positive impact on the exchange rate,
incomes have significant and positive impact on the exchange rate, domestic
interest rates significantly and negatively on the exchange rate and inflation have
a significant and positive impact on the exchange rate. While the trade balance is
not significant and negative effect on the exchange rate in Indonesia. If the money
supply increases, the exchange rate will also increase or depreciate. If income
increases, the exchange rate will depreciate. If the domestic  interest rate
increases, the exchange rate will appreciate. If inflation increases, the exchange
rate will also depreciate. (2) domestic interest rates, output,  and the exchange
rate significantly influence the money supply in Indonesia.

Keywords : Income, Domestic Interest Rates, Inflation, Trade Balance, Output,
Exchange Rate and Money Supply