文章基本信息

标题：THE IMPACT OF EXCESS LIQUIDITY ON MONETARY POLICY
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作者：M. Barik Bathaluddin ; Nur M. Adhi P. ; Wahyu Ari Wibowo 等
期刊名称：Bulletin Ekonomi Moneter dan Perbankan
印刷版ISSN：1410-8046
电子版ISSN：2460-9196
出版年度：2012
卷号：14
期号：3
页码：245-267
DOI：10.21098/bemp.v14i3.404
出版社：Bank Indonesia
摘要：This paper analyzes the excess liquidity especially on banking industry and its impact on monetary policy in Indonesia. We firstly investigate the determinants of bank behavior on their favor for excess liquidity both for precautionary motive and involuntary. Furthermore we determine the threshold between the low and high excess liquidity regimes. On the next step, this paper evaluates and compares the impact of excess liquidity on monetary policy between the two regimes. The first result shows that the excess liquidity on bank with their precautionary motive is significantly determined by the volatility of money demand, the volatility of economic growth, the bank cost of the bank, and also by the lag of excess liquidity, which conform its persistence. Secondly, using the Threshold-VAR approach, this paper shows the switching regime occurs in 2005 from low to high excess liquidity. Lastly, the excess liquidity reduces the effectiveness of monetary policy on controlling inflation.
关键词：Excess liquidity; Threshold VAR; monetary policy transmission mechanism