Dampak Volatilitas Nilai Tukar Terhadap Inflasi Sektoral: Penerapan Model Overshooting Dornbusch Di Lima Negara Asia

Abstract

This paper is to examine the application of the theory of Dornbusch overshooting in five countries Asia, Indonesia, Malaysia, Singapore, South Korea, and China. Theory of exchange rate overshooting Dornbusch, an increase in the money supply in the short term will cause the exchange rate to depreciate more than the value of long-term depreciation. The implication of these conditions is in his attempt to get to the economic balance, speed of adjustment of prices of goods and services will be slower than the speed of adjustment that occurs in the exchange rate. In the results of this study can be explained that Indonesia, and Singapore has experienced the phenomenon of overshooting. China, South Korea and Malaysia did not has experience this phenomenon, due to the exchange rate regime adopted by the State. Volatility of exchange rate can affect sectoral inflation, phenomenon overshooting exchange rate be held in Indonesia, Singapura and Malaysia.