Article Title

Asymmetric Impacts Of Monetary Policy Shock On Output Gap: Evidence From Regions In Indonesia

Authors

Sugeng Triwibowo, Yokohama National University, Yokohama, JapanFollow
Defy Oktaviani, Yokohama National University, Yokohama, JapanFollow

Document Type

Article

Abstract

We examine the impact of the monetary policy on regional output gaps across 33 Indonesian provinces. Heterogeneous regional responses of the output gap to monetary policy shock are captured using the Vector Autoregressive model. Moreover, the idiosyncratic variations across provinces accounted for different responses are observed with the spatial econometric model. The spatial analysis suggests that economic structure and financial depth positively and significantly determine the aforesaid asymmetric responses. On the other hand, economic size and trade openness have a negative impact on them.

Recommended Citation

Triwibowo, Sugeng and Oktaviani, Defy (2022) "Asymmetric Impacts Of Monetary Policy Shock On Output Gap: Evidence From Regions In Indonesia," Bulletin of Monetary Economics and Banking: Vol. 25: No. 3, Article 4.
DOI: https://doi.org/10.21098/bemp.v25i3.1648
Available at: https://bulletin.bmeb-bi.org/bmeb/vol25/iss3/4

First Page

371

Last Page

398