IDEAS home Printed from https://ideas.repec.org/a/idn/journl/v14y2012i3bp1-26.html
   My bibliography  Save this article

Dampak Persistensi Ekses Likuiditas Terhadap Kebijakan Moneter

Author

Listed:
  • M. Barik Bathaluddin

    (Bank Indonesia)

  • Nur M. Adhi P

    (Bank Indonesia)

  • Wahyu A.W

    (Bank Indonesia)

Abstract

This paper analyzes the excess liquidity especially on banking industry and its impact on monetary policy on Indonesia. We firstly investigate the determinants of bank behavior on their favor for excess liquidity both for precautionary motive and involuntary, and furthermore determine the threshold between low and high excess liquidity regimes. On the next step, this paper evaluates the impact of excess liquidity on monetary policy on the two regimes. The first result shows that the excess liquidity on bank with their precautionary motive is significantly determined by the volatility of money demand, volatility of economic growth, the bank cost of the bank, and also the lag of excess liquidity, which conform its persistence. Secondly, using the Threshold-VAR approach, this paper shows the switching regime occurs in 2005 from low to high excess liquidity. Lastly, the excess liquidity reduces the effectiveness of monetary policy on controlling inflation.

Suggested Citation

  • M. Barik Bathaluddin & Nur M. Adhi P & Wahyu A.W, 2012. "Dampak Persistensi Ekses Likuiditas Terhadap Kebijakan Moneter," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 14(3), pages 1-26, January.
    • Handle: RePEc:idn:journl:v:14:y:2012:i:3b:p:1-26
    DOI: https://doi.org/10.21098/bemp.v14i3.359
    as

    Download full text from publisher

    File URL: https://www.bmeb-bi.org/index.php/BEMP/article/view/359/331
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.21098/bemp.v14i3.359?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Excess liquidity; Threshold VAR; monetary policy transmission mechanism;
    All these keywords.

    JEL classification:

    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:journl:v:14:y:2012:i:3b:p:1-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lutzardo Tobing or Jimmy Kathon (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.