Open AccessDETERMINAN TINGKAT SUKU BUNGA PINJAMAN DI INDONESIA TAHUN 1983 – 2002
Author(s) -
Taufik Kurniawan
Publication year - 2005
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 4
ISSN - 2460-9196
DOI - 10.21098/bemp.v7i3.118
Subject(s) - interest rate , indonesian , inflation (cosmology) , error correction model , economics , exchange rate , inflation rate , monetary economics , money supply , monetary policy , money market , financial system , cointegration , econometrics , linguistics , philosophy , physics , theoretical physics
This paper analyzes the role of international interest rate, money supply, inflation, SBI rate (Sertifikat Bank Indonesia) and GDP on the lending rate. We use the Error Correction Model on Indonesian yearly data from 1983 – 2002 and confirm the significant of these explanatory variables as the determinant of short and long term credit lending rates.These findings conforms the necessity for Bank Indonesia as monetary authority to take into account the external factors and support the integration of domestic and foreign financial market.Keyword: Error Correction Model, Interest rate, Financial market, Money Supply, Lending rate.JEL: C22, E44, E51