Document Type
Article
Abstract
We examine the effect of the exchange rate on the economy and the impact of the Dominant Currency Paradigm (DCP) on Indonesia’s export volume. This study employs multiple methodologies, namely the Auto Regressive Distributed Lag (ARDL) model, the non-linear version of ARDL, and panel regressions. The findings indicated that the depreciation of the exchange rate influenced economic expansion. The beneficial effect was mitigated by the influence of finance as seen in the company’s financial sheet. The findings also indicate the influence of DCP on the volume of international trade in Indonesia.
Recommended Citation
Supriyadi, Ayi; Yanfitri, Yanfitri; Arimurti, Trinil; and Atharinanda, Sinta
(2025)
"Exchange Rate and Indonesia Economic Growth,"
Bulletin of Monetary Economics and Banking: Vol. 28:
No.
2, Article 5.
DOI: https://doi.org/10.59091/2460-9196.1932
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol28/iss2/5
First Page
261
Last Page
292
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
Indonesia
Affiliation
Bank Indonesia
