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

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dc.contributor.authorRahadyan, Heru
dc.contributor.authorLubis, Alexander
dc.date.accessioned2021-07-08T08:47:27Z
dc.date.available2021-07-08T08:47:27Z
dc.date.issued2018-07-25
dc.description.abstractThe 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.en_UK
dc.identifier.citationRahadyan H, Lubis A. (2018) Monetary integration in the ASEAN Economic Community challenge: the role of the exchange rate on inflation in Indonesia. International Journal of Services Technology and Management, Volume 24, Issue 5/6, September 2018 pp. 463-479en_UK
dc.identifier.issn1460-6720
dc.identifier.urihttps://doi.org/10.1504/IJSTM.2018.094438
dc.identifier.urihttp://dspace.lib.cranfield.ac.uk/handle/1826/16856
dc.language.isoenen_UK
dc.publisherInderscienceen_UK
dc.rightsAttribution-NonCommercial 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by-nc/4.0/*
dc.subjectIndonesiaen_UK
dc.subjectAECen_UK
dc.subjectASEAN Economic Communityen_UK
dc.subjectAssociation of Southeast Asian Nationsen_UK
dc.subjectmonetary policyen_UK
dc.subjectinflationen_UK
dc.subjectERPTen_UK
dc.subjectexchange rate pass-throughen_UK
dc.titleMonetary integration in the ASEAN Economic Community challenge: the role of the exchange rate on inflation in Indonesiaen_UK
dc.typeArticleen_UK

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