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Research Article

EEO. 2021; 20(4): 149-156


Putu Krisna Adwitya Sanjaya, Made Heny Urmila Dewi, Ni Putu Martini Dewi.


Introduction. The demand for money has a strategic position for the monetary authority in formulating fundamental policies to maintain the stability of a country's economy. This study aimed to determine the determinants of money demand in Indonesia, either simultaneously or partially. Method.This research used time seriesdata of 1990 Q: 1 - 2019 Q: 4 period and usedquantitative analysis distributed lagmodel. This study found the fact that national income, inflation, US dollar exchange rate and money demand in the previous period partially and simultaneously have a significant effect on demand for money during the analysis period. Result. Value of R2Goodness of Fit= 0.950 indicated 95.00 percent of variations in money demand in Indonesia can be explained or influenced by variations in the amount of national income, inflation, United States dollar exchange rate and demand for money in the previous period while the remaining 5.0 percent is influenced by other variables, the constant coefficient and long-run regression coefficient, = (1 - 0.210) = 0.79. δ = 0.79 means that the adjustment time is 0.79 x 12 months = 9.48 months = 285 days. The long adjustment time is caused by the expectations of individuals or economic actors. Conclusion. The results of this study were expected to be able to enrich the development of science so that it could become a reference in similar research in the future. In line with Tri Samaya as Hindu concept, it is hoped that the authorities, economic actors and stakeholders in making decisions related to the demand for money need to consider the past (atita) current (wartamana) and future (anagatha) aspects so that decisions are made wiser and more effective for overcoming problems that occur in order to achieve development goals and economic prosperity.

Key words: Macroeconomics, Demand for Money, TriSamaya, Time Series

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