Contribution of <i>Shari’ah</i> Monetary Instrument to Control Inflation in Indonesia

Bayuni, Eva Misfah; Srisusilawati, Popon

doi:10.1108/978-1-80043-786-920211008

Cited by 3 publications

(6 citation statements)

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“…The policy held by the central bank of a country is the key in regulating economic stability which will also have an impact on the real condition of a country's economy (Muhammad et al, 2017). In several theories, such as that revealed by Chouwdury (2005) that the financial aspect (monetary) with real economic conditions in Previous researchers have done a lot of analysis and concept development on how data macroeconomic factors become a forecasting medium in regulating the growth and stability of a country's economy, such as examining the relationship and relationship between the capital market or stock market and economic growth (Cave et al, 2020;Coşkun et al, 2017;Ho, 2018;Muharam et al, 2019;Nathaniel et al, 2020;Nguyen & Bui, 2019;Oprea & Stoica, 2018;Osaseri & Osamwonyi, 2019 ;Pradhan, 2018), inflation and economic growth (Abuoliem et al, 2019;Agbonlahor, 2014;Balk et al, 2020;Bayuni & Srisusilawati, 2018;Denbel et al, 2016;Fountas et al, 2002;Oliinyk et al, 2020;A. Uddin et al, 2019;Ullah et al, 2020), as well as currency exchange rates and economic growth (Babubudjnauth, 2020;Chan et al, 2019;Feriyantoa, 2020;Mlambo, 2020;Oliinyk et al, 2020;Park, Ryu, & Lee, 2019).…”

Section: Figure 1 World Economic Growthmentioning

confidence: 99%

“…In addition, the researchers also conducted various deepening of the relationship between monetary policy and its instruments in influencing growth, both in conventional monetary policy on economic growth (Bhattacharya et al, 2009;Igharo et al, 2020;Khabo & Harmse, 2005;Mishchenko et al, 2018;Precious & Palesa, 2014;Twinoburyo & Odhiambo, 2018;Younsi & Nafla, 2019), Islamic monetary policy on economic growth (Bayuni & Srisusilawati, 2018;Octaviani & Al Arif, 2018;Wahid et al, 2020), as well as monetary policy in the dual banking system and its transmission mechanism for growth (Muhammad et al, 2017;Wisandani et al, 2017;Ascarya, 2012;Ascarya, 2014;Ayuniyyah et al, 2013;Muhammad et al, 2017;Rusydiana, 2009).…”

Section: Figure 1 World Economic Growthmentioning

confidence: 99%

“…Meanwhile, Chapra (1985) emphasizes that the goal of Islamic monetary is to welfare (well-being) at the most optimal growth, distribution justice (distributive justice) and stabilization of the value of money. The ability of a monetary policy to regulate money supply and demand and its ability to have an impact on the ultimate goals of monetary policy through various channels is called monetary policy transmission (Mishkin, 2004;Bayuni & Srisusilawati, 2018).…”

Section: Monetary Policy Transmission In the Dual Banking Systemmentioning

confidence: 99%

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Dynamic Model of The Impact of Macro Indicators and Islamic Monetary Policy Instruments on The Dual Banking System

Maisuroh

Adam

2022

iijse

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Indonesia is the largest Muslim country with a unique monetary system that in its development tries to juxtapose two monetary systems that have different philosophies and still need to be deepened on the extent of their impact and effectiveness on the economy. The study explores the impact of macro indicators and monetary policy instruments on economic output in Indonesia. Using the time series analysis method with the Vector Error Correction Model (VECM) approach, the model shows the results that the Macro Capital Market or Stock Market indicators have a positive impact on the economy both in the short and long term. At the same time, inflation responds positively to short-term behavior but becomes economic constraints in long-term action. Meanwhile, in the Monetary policy instruments’ scope, the M1 variable consistently has positive implications both in the short and long term. In contrast, the M2 and SBIS variables give negative responses in the short time but become a driving force for the economy in the long term. Meanwhile, there is no positive correlation between Sharia, Monetary Operations with Economic Output. The research suggests focusing on innovating sharia monetary policy instruments by continuing to carry out monetary policy reforms in order to stimulate better economic conditions.

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Section: Figure 1 World Economic Growthmentioning

confidence: 99%

Section: Figure 1 World Economic Growthmentioning

confidence: 99%

Section: Monetary Policy Transmission In the Dual Banking Systemmentioning

confidence: 99%

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Dynamic Model of The Impact of Macro Indicators and Islamic Monetary Policy Instruments on The Dual Banking System

Maisuroh

Adam

2022

iijse

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“…The existence of differences in principles between Islamic economics and conventional economics associated with the problem of the interest device (predetermined charges) has implications for the remedy of a monetary policy layout which could accommodate both of these topics and remains inside a complete economic policy framework. The twin banking gadget in Indonesia need to prioritize consistency among sharia contraptions and traditional instruments and be aware of the principle of equality for both kinds of banking (Bayuni, Eva Misfah, Srisusilawati, 2018).…”

Section: Islamic Monetary Control Instruments In Indonesiamentioning

confidence: 99%

Sharia Monetary Policy Instruments in Indonesia

Abi Suar,

Zandy Pratama Zain,

Hijrasil

2022

JOVISHE

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In Islamic monetary policy, there is no known interest system. The instruments used in Islamic monetary policy are also different from monetary policy in general because they are not familiar with the interest system. Precisely with the unknown interest system, making Islamic monetary policy more resistant to economic turmoil so that in the end the ultimate goal of monetary policy can be achieved and will be able to become a new tool in maintaining economic stability. The approach used in this study is Literature review using the Systemic Literature Review (SLR) method. The purpose of this study is to find out how the Islamic Monetary Policy Instrument is defined, mazhab and its implementation in Indonesia.Indonesia as a country that implements a dual monetary system, Indonesia also conducts monetary policy through OMS or Sharia Monetary Operations. Sharia Monetary Operation is the implementation of monetary policy by Bank Indonesia in the context of monetary control through open market operations and the provision of standing facilities based on sharia principles. The objectives of CSOs areachieve the operational target of sharia monetary control in order to support the achievement of the final target of Bank Indonesia's monetary policy. Abstrak Dalam kebijakan moneter Islam, tidak dikenal sistem bunga. Instrumen yang digunakan dalam kebijakan moneter syariah juga berbeda dengan kebijakan moneter pada umumnya karena belum mengenal sistem bunga. Justru dengan tidak dikenalnya sistem bunga membuat kebijakan moneter syariah lebih tahan terhadap gejolak ekonomi sehingga pada akhirnya tujuan akhir kebijakan moneter dapat tercapai dan mampu menjadi alat baru dalam menjaga stabilitas ekonomi. Pendekatan yang digunakan dalam penelitian ini adalah Literature review dengan menggunakan metode Systemic Literature Review (SLR). Tujuan dari penelitian ini adalah untuk mengetahui bagaimana definisi Instrumen Kebijakan Moneter Syariah, mazhab dan implementasinya di Indonesia. Indonesia sebagai negara yang menerapkan sistem moneter ganda, Indonesia juga melakukan kebijakan moneter melalui OMS atau Operasi Moneter Syariah. Operasi Moneter Syariah adalah pelaksanaan kebijakan moneter oleh Bank Indonesia dalam rangka pengendalian moneter melalui operasi pasar terbuka dan pemberian standing facilities berdasarkan prinsip syariah. Tujuan CSO adalah untuk mencapai sasaran operasional pengendalian moneter syariah dalam rangka mendukung pencapaian sasaran akhir kebijakan moneter Bank Indonesia.

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“…Monetary policy to reduce money circulation. These policies can determine cash reserves, political discounts, and open market operations (Bayuni & Srisusilawati, 2018) and have fiscal policies related to government budget receipts and expenditures. So inflation itself can be concluded that it is very dangerous for the country's economy and requires solutions to immediately overcome these problems (Junaedi & Setiawati, 2019).…”

Section: Introductionmentioning

confidence: 99%

Analysis of Government Policy Regarding the Threat of Unemployment After the Increase in Inflation

Arianto Zega,

Sandy,

Andrian

et al. 2023

ijsh

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Inflation is a condition where the price of goods experiences price increases from time to time and causes the price of a country's currency to fall. When this inflation occurs, it will positively impact unemployment so that unemployment will increase. When the unemployment rate in a country is high, it will have a very bad impact on its economy. So this study is to know and analyze government policies related to the threat of unemployment after the increase in inflation. This study uses qualitative research methods, which concentrate on the threat of unemployment after the increase in inflation related to government policies. The results of this study indicate that the policies implemented by the government itself play a very important role and are the main key to overcoming inflation and unemployment in a country. Therefore, the government needs to be able to evaluate all policies that are taken in the future so that the results of the policies that have been taken do not hurt the community and the country. Inflation in a country can cause the price of goods to rise and the currency to fall, which in turn can negatively impact the unemployment rate. Therefore, the government must take appropriate policies to control inflation and reduce unemployment, such as maintaining stable supplies of raw materials and keeping prices affordable, providing support to small and medium enterprises, and providing training to workers to improve their skills in the world work.

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Contribution of Shari’ah Monetary Instrument to Control Inflation in Indonesia

Cited by 3 publications

References 0 publications

Dynamic Model of The Impact of Macro Indicators and Islamic Monetary Policy Instruments on The Dual Banking System

Dynamic Model of The Impact of Macro Indicators and Islamic Monetary Policy Instruments on The Dual Banking System

Sharia Monetary Policy Instruments in Indonesia

Analysis of Government Policy Regarding the Threat of Unemployment After the Increase in Inflation

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