Inflation is a regional phenomenon hence the use of provincial data might be more appropriateon explaining the relationship between monetary policy and inflation. This paper analyzes the impact of changes in provincial money supply, the policy rate, and the interbank rate on regional inflation, within the framework of Hybrid New Keynesian Phillips Curve (HNKPC). This paper employs Generalized Method of Moments (GMM) on panel data of 32 provinces from 2005-III to 2014-IV. The estimation result shows that provincial monetary aggregate influence inflation significantly only in Sumatera. Furthermore, the policy fate affects the inflation in Sumatera and Kalimantan-Sulawesi. Using the interbank money rate, the result shows this rate also affect the inflation in most of the region except Kalimantan-Sulawesi. These findings show the price-based policy is more significant on affecting the provincial inflation compared to the provincial money supply.

This study aims to determine corporate governance (CG) with principal-agent theory (PAT). Using a critical review, several theories were found related to CG and PAT research. The procedure used is to discuss the theoretical aspects, methods, and research results. It was found that CG using PAT has great potential to be widely developed measures the extent to which the research constructs incentives, disciplines, ethics and feminist perspectives, property rights, company performance, executive remuneration, securitization, ownership systems, Small and Medium Enterprises (SMEs), conjunction legal systems, State-Owned Enterprises (BUMN), hospitals public, compensation, environmental protection, not-for-profit organizations, and CG systems.

Competition has long been debated as a vital factor determining banking performance and stability. The broad perspectives are divided into two streams, the ‘competition-fragility’ and ‘competition-stability’ view. Banking industry in Indonesia is experiencing consolidation waves as an effort to strengthen capital and enhance intermediation performance. The consolidation, however, inevitably alter the degree of competition. In this study, we propose a detailed assessment of competition effect through disentanglement amongst different bank clusters, particularly with respect to BUKU classification. The separation is done through Fixed Effect Vector Decomposition method, complemented by interaction variables. We found an indication that competition amongst Indonesian banks can be divided into two segments: the first containing BUKU1 and 2, while the latter BUKU3 and 4. Observing 57 banks using monthly data in 2006-2015, our study supports the competition-stability view, suggesting competition has positive influences on bank soundness. Adding more market power to the leader in each segment (BUKU2 and BUKU4, respectively) would have insignificant, if not malign, effect; the opposite for the challenger. Further, aside from competition, we found that interbank interaction promotes soundness.Keywords: competition; bank soundness; fixed effect vector decomposition