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
Gustiani, Ebrinda Daisy; Ascarya, Ascarya; and Effendi, Jaenal
"INFLUENCE ANALYSIS OF SOCIAL VALUES ON THE NUMBER OF ISLAMIC MONEY DEMAND IN INDONESIA,"
Bulletin of Monetary Economics and Banking: Vol. 12:
4, Article 1.
Available at: https://bulletin.bmeb-bi.org/bmeb/vol12/iss4/1