Monetary Policy Transmission and Credit Cards: Evidence From Indonesia

Abstract

This paper empirically tests the dynamics of credit cards and monetary policy in thecontext of Indonesia. Using monthly data from 2006 to 2018 and a structural vectorautoregressive model, our findings indicate that credit card usage is mainly drivenby Indonesia’s fast economic growth over the last decade, which indeed reflects therole of credit cards in consumption smoothing. The study also finds that monetarypolicy transmission through the lending channel is weak, with a more prevalent rolefor exchange rates and global oil prices in the transmission process.

Kredi Kartı Harcamalarını Etkileyen Makroekonomik Faktörler ve COVID-19 Pandemi Dönemi Üzerine Bir İnceleme

“…Lamdin (2008) examined the relationship between consumer trust and credit card expenditures with Granger Causality Analysis in his study on the USA between 1978-2007. Prabheesh and Rahman (2019) examined the relationship between credit card expenditures and macroeconomic variables such as national income, inflation, credit card interest rate, policy interest rate, exchange rate, oil prices in Indonesia for the period 2006-2018 with structural VAR analysis. Sonmezler et al (2019) by the study, in 2012 Turkey: 02-2018: 02 period, with credit card spending amount for living index published by the Istanbul Chamber of Commerce and analyzed with the consumer confidence index relationship between the ARDL bounds test.…”

The Intersection of Criminal Law, Technology and Business Commercial Law on Carding as Cyber Fraud

“…In Indonesia, from data obtained by the SingTel Communication Group from Singapore, in 2013, online business transactions in Indonesia were doubled. During the first semester, there were more than 19 million export, import, and domestic trade transactions through the internet in Indonesia, with a value of USD 478 million or around 5.1 trillion Rupiahs (Zuraida, 2015;Prabheesh & Rahman, 2019;Achsan et al, 2020). Considering the immense potential of carding in Indonesia and the global world, it is the business and trade actors' job in the private sector (banks) to overcome cyber fraud in their business.…”

Sharia Compliance-Credit Card Exposure and Utilization in the Growing Digital Economy

“…Nov -17 689 030 755 101 26 983 117 24 511 453 Dec-17 634 133 691 786 28 590 026 26 535 800 Jan-18 722 614 799 011 28 251 742 25 358 875 Feb-18 627 616 687 698 24 484 745 20 976 292 Mar-18 688 089 755 287 27 289 443 24 795 500 Apr-18 704 942 762 650 27 633 702 24 911 444 May-18 685 988 762 166 28 614 387 26 274 813 Jun-18 525 552 622 266 27 141 547 24 780 132 Jul-18 674 980 756 224 27 639 954 25 981 547 Aug-18 691 425 766 165 26 890 389 25 405 Many studies on credit cards have been conducted, such as that of Prabheesh and Rahman (2019), who analysed the macroeconomic aspect. In addition, Junadi and Sfenrianto (2015) and Wulandari et al (2016) discussed behaviour in the use of e-payment systems in Indonesia, including credit cards.…”