MONEY SUPPLY AND MACROECONOMIC FACTORS  THAT INFLUENCED BEFORE COVID 2019

Musaiyadi Musaiyadi; Ahmad  Sauqi; Angga  Ade Permana

Musaiyadi Musaiyadi Mandala Institute of Technology and Science
Ahmad Sauqi Mandala Institute of Technology and Science
Angga Ade Permana Mandala Institute of Technology and Science

Keywords: Total Money Supply (JUB) in Indonesia, Macroeconomiic, Monetary Policy Instruments

Abstract

This study is intended to determine what macroeconomic variables or factors affect the money supply (JUB) in Indonesia. By using secondary data for 1999 – 2019 collected from BPS and BI – using the OLS regression method on the partial adjustment model – the results obtained are: (1) interest rates and inflation both have a statistically significant negative effect on JUB in Indonesia, (2) the exchange rate, foreign exchange reserves, government spending and GDP do not affect the JUB in Indonesia. From the results of the study, it appears that the Indonesian government is more dominant in using monetary policy instruments than fiscal policy in managing the money supply in Indonesia. JUB in Indonesia.

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