Abstract
The changing of exchange rate is due to interaction between economic factors and non-economic factors. The aim of this research is to analyse some factors that affect exchange rate and their implications on Indonesian economy. Analytical method used in this research is explanatory method is to test hypothesis about simultaneous relationship among variables that research by developing the characteristics of verificative research by doing some testing at every step of research. We used secon-dary data taken from BI, BPS, World Bank and IFS. We used error correction model (ECM) to analysis between independent variable and dependent variable in both the short run and long run. The result of this research shows that ratio between domestic interest rate and international interest rate did not affect negative and significantly to exchange rate. Capital flow affected negative and significantly. Balance of payment affected negative and significantly. Money supply affected positive and significantly. According ECM method that used in this research shows that the methodology is good to analyse because the magnitude of ECT is accept.
Highlights
Neraca pembayaran internasional merupakan suatu catatan sistematis yang menunjukkan nilai aktivitas ekonomi suatu negara terhadap negara atau pihak asing selama satu periode tertentu
The changing of exchange rate is due to interaction
Analytical method used in this research is explanatory method is to test hypothesis
Summary
Analisis mengenai perubahan pada pasar modal terhadap penentuan keseimbangan nilai tukar pada perekonomian terbuka telah banyak dikaji oleh beberapa ahli. Pada perekonomian di mana jumlah uang beredar ditentukan oleh pemerintah, maka permintaan uang dirumuskan dalam suatu fungsi likuiditas preferensi sebagai berikut:[1]. M d = L(r, y) = Ms , P dimana: Md = Permintaan uang Ms = Jumlah uang beredar P = Deflator harga domestik r = Tingkat bunga nominal domestik y = Pendapatan riil domestik. Permintaan mata uang domestik dalam bentuk obligasi merupakan fungsi tingkat bunga, tingkat depresiasi mata uang domestik yang diharapkan, pendapatan riil dan nilai pasar kekayaan secara riil yang dapat dirumuskan sebagai berikut:[2]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
