Abstract
The monetary policy transmission mechanism has many ways in influencing inflation. This method became known as the monetary path. The use of appropriate channels in monetary policy will affect whether or not the objectives of the monetary policy are achieved. This study aims to determine which monetary path is appropriate for Indonesia, which is a developing country with an open economic system. The data used are secondary data taken from Bank Indonesia for the period 2005 to 2016. The research variables include inflation, BI-rate, credit interest rates (SBB), gross domestic product (GDP), exchange rate, bank reserve (BBR), and the amount of credit extended. This study focuses on the path of interest rates, exchange rates and bank credit using the Error Correction Model (ECM). The results of this study indicate that the right monetary path for Indonesia is the credit channel. This is because the value of the Error Correction Term (ECT) coefficient on the ECM model shows that the coefficient of the credit channel is smaller than the interest rate and exchange rate channel, which means that the imbalance that occurs can be resolved more quickly with the credit channel.
Highlights
The monetary policy transmission mechanism has many ways in influencing inflation
Kenyataannya dalam menjalankan dua atau tiga sasaran akhir tersebut masih cukup sulit, karena antara sasaran satu dan lainnya terdapat trade-off berkaitan dengan manfaat dan dampak yang diperoleh
Do Credit Channel and Interest Rate Channel Play Important Role in Monetary Transmission Mechanism in Indonesia?
Summary
Kebijakan moneter merupakan kebijakan otoritas moneter atau Bank Sentral dalam bentuk pengendalian besaran moneter untuk mencapai perkembangan kegiatan perekonomian yang diinginkan (Warjiyo & Solikin, 2003). Berkaitan dengan pencapaian sasaran akhir, berdasarkan amanat UU No 23 tahun 1999 mengenai Bank Indonesia yang telah diamandemen dengan UU No 3 tahun 2004, menetapkan bahwa tujuan utama pelaksanaan kebijakan moneter di Indonesia yang dikenal dengan single objective, adalah untuk mencapai dan memelihara kestabilan nilai Rupiah (Heroika, 2011). Adapun sasaran operasional yang digunakan dalam kebijakan ini adalah pengendalian suku bunga oleh otoritas moneter, yang sebelumnya menggunakan jumlah uang beredar. Harapannya, dengan meningkatkan pemahaman mengenai mekanisme transmisi kebijakan moneter dapat mendorong pertumbuhan ekonomi serta menentukan pilihan yang lebih baik dari variabel sasaran (Wulandari, 2012). Berdasarkan latar belakang tersebut, maka penelitian ini bertujuan untuk mengetahui efektivitas jalur suku bunga, nilai tukar, dan kredit dalam kerangka ITF.
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