Implications of Using E-money and APMK on the Money Supply: The Case of Indonesia

DOI

10.2991/aebmr.k.201126.025How to use a DOI?

Keywords

E-money, APMK, Money Supply, Error Correction Model

Abstract

The innovation of payment systems due to technological development, replace the role of cash to electronic money (e-money) and cards as the lifestyle of people in the transaction method. This study aims to see the influence of the use of e-money as well as debit and credit card against the money supply in Indonesia in short and long term. The data in this research is secondary data in the form of time series which sourced from the Bank Indonesia website, with period from 2015M1 to 2020M2. This study used ECM (Error Correction Model) analysis. The study shows that in the long term the use of e-money and debit cards have a dominant influence, while in the short term have a significant effect on the amount of money circulating in Indonesia. The strong influence of the use of electronic money and means of payment using cards on the money supply, makes the authorities in particular in the monetary policy authority can consider this to take appropriate actions and monetary policy decisions, because as is well known fluctuations in the money supply greatly affect financial system stability in a country. If instruments such as the use of electronic money and APMK are considered in the formulation of policies, this will be more informative in predicting the certainty of the money supply in the society, and it’s hoped that the Central Bank will be able to produce effective monetary policies in influencing the real economy in a country.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zul Azhar
AU  - Hari Setia Putra
AU  - Mutia Huljannah
PY  - 2020
DA  - 2020/11/27
TI  - Implications of Using E-money and APMK on the Money Supply: The Case of Indonesia
BT  - Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)
PB  - Atlantis Press
SP  - 209
EP  - 220
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201126.025
DO  - 10.2991/aebmr.k.201126.025
ID  - Azhar2020
ER  -