Document Type
Article
Abstract
The digital financial services industry or financial technology (FinTech) has emerged in Indonesia in recent years. The FinTech industry, although disruptive, promises among other things to reduce costs of, and improve access to, financial services. This paper investigates the macroeconomic implications of FinTech companies in Indonesia over the period 1998-2017. In particular, we investigate the impact of FinTech on the Indonesian exchange rate (Rupiah vis-a-vis the US dollar) and the inflation rate. Our results suggest that FinTech is able to reduce inflation and lead to a real appreciation of the Rupiah against the US dollar, although its effect on the exchange rate is delayed. We explain our results and discuss future research directions in the paper.
Recommended Citation
Narayan, Seema Wati and Sahminan, Sahminan
(2018)
"HAS FINTECH INFLUENCED INDONESIA’S EXCHANGE RATE AND INFLATION?,"
Bulletin of Monetary Economics and Banking: Vol. 21:
No.
2, Article 3.
DOI: https://doi.org/10.21098/bemp.v21i2.966
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol21/iss2/3
First Page
177
Last Page
190
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
Australia
Affiliation
Royal Melbourne Institute of Technology University