Money Supply Endogeneity: Evidence From Indonesia

Abstract

Under the theories of money supply endogeneity, bank loan plays an important role in the creation of money within an economy. This research aims to provide evidence of money supply endogeneity in Indonesia over a period of 12 years using monthly data. We found the existence of bi-directional causality between bank loans and money supply, bank loans and monetary base, as well as bank loans and money multiplier. These findings are consistent with the endogenous money supply hypotheses particularly the structuralist view of endogenous money supply.

Menurut teori Endogenitas penawaran uang, pinjaman bank memiliki peran yang penting dalam penciptaan uang dalam suatu ekonomi. Penelitian ini bertujuan untuk menyajikan bukti Endogenitas penawaran uang pada Indonesia dalam periode 12 tahun menggunakan data bulanan. Kami menemukan adanya kausalitas dua arah antara pinjaman bank dan penawaran uang, pinjaman bank dan basis moneter, serta pinjaman bank dan pengganda uang. Penemuan ini konsisten dengan hipotesis Endogenitas penawaran uang tepatnya Endogenitas penawaran uang struktural.