Jumlah Uang Beredar Dan Faktor-Faktor Yang Mempengaruhi (Tinjauan Money Supply(M2) Periode Tahun 1990-2002)

Abstract

This paper analyses the money supply in Indonesia for the period 1990 – 2002. Having analyzed yearly and quarterly data, we discovered independence between government spending, foreign reserves, and the money multiplier. This reflects the evolving nature of a transmission mechanism between monetary and real variables on the one hand and the accommodative character of monetary policy on the other. The result using log model show that government spending is positively and significantly related to the money supply (1990-1997). For the entire period, government spending is still have a positive and significant effect on money supply while the money multiplier has no significant effect (1990-2002).