The Effect of Interest Rates on the Financial Cycle in Indonesia
Edwin Basmar, Carl Campbell III, Hasniaty, Erlin Basmar
Available Online March 2019.
- https://doi.org/10.2991/icmemm-18.2019.2How to use a DOI?
- Interest Rate, Financial Cycle, Financial Crisis
- The purpose of this study is to determine the relationship between interest rates and the pressure on the movement of the financial cycle in Indonesia. This study uses secondary data from Bank Indonesia from 1990 to 2017, data is processed using Simultaneous Equation Model. The results of this study found that interest rates have a positive and significant impact on the financial cycle, with a pressure of 0.72 to - 23.92 Amplitude. The renewal of this research shows that short-term interest rates are very effective for economic growth, and long-term interest rates can make pressure on the financial cycle in Indonesia.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Edwin Basmar AU - Carl Campbell III AU - Hasniaty AU - Erlin Basmar PY - 2019/03 DA - 2019/03 TI - The Effect of Interest Rates on the Financial Cycle in Indonesia BT - First International Conference on Materials Engineering and Management - Management Section (ICMEMm 2018) PB - Atlantis Press SP - 7 EP - 10 SN - 2352-5428 UR - https://doi.org/10.2991/icmemm-18.2019.2 DO - https://doi.org/10.2991/icmemm-18.2019.2 ID - Basmar2019/03 ER -