INFLUENCE ANALYSIS OF SOCIAL VALUES ON THE NUMBER OF ISLAMIC MONEY DEMAND IN INDONESIA

Authors

Ebrinda Daisy Gustiani, University of Indonesia, IndonesiaFollow
Ascarya Ascarya, Bank Indonesia, IndonesiaFollow
Jaenal Effendi, Bogor Agricultural University, IndonesiaFollow

Document Type

Article

Abstract

As one of the existing instruments in the economic system of Islam, Zakat Becomes Important to Investigate its influence in the Formulation of monetary policy in Indonesia, especially relating to the amount of money. This paper analyzes whether Zakat will of affect, the money demand of Islam in Indonesia, by applying the Vector Error Correction Model (VECM) on monthly data During 2001 to 2007. This paper derives Trust interesting results on both conventional and Islamic money demand in Indonesia. In general, the result confirms the Domination of conventional economic system, one relative to the Islamic (Sharia), while the social value does not significantly affect the money demand in Indonesia.JEL Classification: C32, E41, P52Keywords: Money demand, social values, Islam, the VAR / VECM

Recommended Citation

Gustiani, Ebrinda Daisy; Ascarya, Ascarya; and Effendi, Jaenal (2010) "INFLUENCE ANALYSIS OF SOCIAL VALUES ON THE NUMBER OF ISLAMIC MONEY DEMAND IN INDONESIA," Bulletin of Monetary Economics and Banking: Vol. 12: No. 4, Article 1.
DOI: https://doi.org/10.21098/bemp.v12i4.381
Available at: https://bulletin.bmeb-bi.org/bmeb/vol12/iss4/1

First Page

481

Last Page

510

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

University of Indonesia