Analysis of Conventional and Sharia Monetary Policies through Asset Prices on Inflation in Indonesia

Julika Rahma Siagian, Dede Ruslan, Arwansyah

2018

Abstract

This study aims to analyze the transmission mechanism of monetary policy in Indonesia in controlling inflation, both in terms of sharia and conventional terms. The data used in this empirical study is time series data during 2011:1-2017:4 originating from Bank Indonesia and the Central Statistics Agency (BPS). The analysis tool used is the Error Correction Model (ECM). This study analyzes the relationship between independent and dependent variables both in the short and long term. The results of this study indicate that from conventional monetary variable SBI (certifikat of bank indonesia) variables that have a positive and significant effect on inflation in the long-term. Whereas in the short term the variable money supply has a negative effect and variable interest rates on Bank Indonesia, bonds have a positive and significant effect on inflation. In Islamic monetary variables, SBIS have a positive and significant effect on inflation in the long-term. Islamic bond variables (Sukuk) have a negative and significant effect on inflation in the long-term. While in the short-term the variable money supply, Islamic interest rates, and Islamic bonds have a positive and significant effect on inflation.

Paper Citation

in Harvard Style

Siagian J., Ruslan D. and Arwansyah. (2018). Analysis of Conventional and Sharia Monetary Policies through Asset Prices on Inflation in Indonesia.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 466-472. DOI: 10.5220/0009502304660472

in Bibtex Style

@conference{unicees18,
author={Julika Rahma Siagian and Dede Ruslan and Arwansyah},
title={Analysis of Conventional and Sharia Monetary Policies through Asset Prices on Inflation in Indonesia},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={466-472},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009502304660472},
isbn={978-989-758-432-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,
TI - Analysis of Conventional and Sharia Monetary Policies through Asset Prices on Inflation in Indonesia
SN - 978-989-758-432-9
AU - Siagian J.
AU - Ruslan D.
AU - Arwansyah.
PY - 2018
SP - 466
EP - 472
DO - 10.5220/0009502304660472