Monetary integration in the ASEAN Economic Community challenge: the role of the exchange rate on inflation in Indonesia

IF 0.6 Q4 MANAGEMENT

International Journal of Services Technology and Management Pub Date : 2018-09-05 DOI:10.1504/IJSTM.2018.10014966

Heru Rahadyan, Alexander Lubis

引用次数: 1

Abstract

The implementation of the ASEAN Economic Community (AEC) in 2015 required some form of monetary integration, such as exchange rate management. This paper investigates the role of the exchange rate on the inflation rate in Indonesia. Using the monthly data series from 1970 to 2015, we find that the nominal exchange rate affects the inflation rate at a low transmission speed rate. However, the exchange rate volatility and depreciation threshold may accelerate the speed of the exchange rate's transmission to inflation. Thus, studies with short-lagged variables, or studies in different periods may lead to different findings, as shocks and changes in exchange regimes occur regularly in Indonesia. These findings are important as they imply that Indonesia may fail to reach the aims of the AEC if it fails to coordinate its exchange rate policy with the rest of the AEC.

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东盟经济共同体面临的货币一体化挑战：汇率对印度尼西亚通货膨胀的作用

2015年东盟经济共同体（AEC）的实施需要某种形式的货币一体化，如汇率管理。本文研究了汇率对印尼通货膨胀率的影响。使用1970年至2015年的月度数据序列，我们发现名义汇率在低传输速率下影响通货膨胀率。然而，汇率波动和贬值门槛可能会加速汇率向通胀的传导速度。因此，具有短滞后变量的研究或不同时期的研究可能会得出不同的结果，因为印尼经常发生汇率制度的冲击和变化。这些发现很重要，因为它们意味着，如果印尼不能与AEC的其他成员协调汇率政策，它可能无法实现AEC的目标。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Services Technology and Management MANAGEMENT-

CiteScore

1.10

自引率

0.00%

发文量

期刊介绍： IJSTM addresses services innovation, services technologies and management, as well as the role of the supply chain, logistics and other related topics. Services cover a wide range of operations and functions, such as human aspects of healthcare, and technological aspects of public services design and management, as well as services provided by the manufacturing sector, information services and the associated cultural, ethical, legal and political aspects; electronic commerce; globalisation in services; and market innovations in services etc. Topics covered include: -Services technology, management and technology management: policy, strategic and operational issues -Services and innovation- Information technology and communication in services, e-commerce- Supply chain management- New developments in marketing and retailing- Human resources and development in services- Customer care- TQM, services quality- Distribution and logistics- Ecologically driven services- Economics of services- Services in society, ethics and culture- Technology related to tourism services and transport- Technology serving scientific research and high-tech industry- Medical, recreational and health tourism