Money Demand In Indonesia Determinant Studies That Effect

The outbreak of the 1998 crisis wave dragged the economy into a state of collapse, by Therefore, this study tries to determine the determinants of the money demand. This study uses a broad interpretation of money (M2), using national income, inflation, domestic deposit interest rates and the crisis monetary as the explanatory variables and analyzed with semi log model approach. The data used in this study are time series from the period 1990: Q1 to 2021 period: Q4. This study is expected to provide an overview for policy makers to maintain the balance of the monetary sector. This research will provide a projection of the variables that influence the demand for money. This study is very interesting because it uses monetary instruments in its analysis, considering monetary problems is a fundamental problem which, if neglected, will disrupt the economy and a regime. This study has limitations because it uses limited time series data due to data availability, so the dynamics of observation choice be limited. This research is a reference for authorities in stimulating and implementing policies to maintain the stability of the Indonesian economy to withstand shocks. This study is the first to use the 2021 time series to estimate pattern of money demand and using a dummy variable as the independent variable. KEYWORDS: Macroeconomics, Money Demand, Monetary Crisis