Agus Budi, Santosa and FX, Sugiyanto and Dwisetia, Poerwono (2017) DORNBUSH STICKY PRICE MODEL TEST IN EXPLAINING THE EXCHANGE RATE FLUCTUATION OF RUPIAH TO AMERICAN DOLLARS. International Journals of Economics Research, 14 (4). ISSN 0972-9380
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Abstract
The stability of Rupiah exchange rate would influence the stability of 1ndonesiaacro cconom: Thus, it is important to manage Rupiah exchange rate stabilitazion. This research aimed to test Dornhusd Sticky Price model in explaining Rupiahhangc rare behaviour. In this research, error correction models (ECM) was used as analysis method to find out the long term and short term connecs. The isults Sh)wed that the value of emr correction term (ECT) was significantly positive. From this result, ir could he concluded that upiah exchange rate moved farther from equilibrium. Even the facts showed the wider gap between daily rate and average volatility of Rupiah exchange rate. In policy maker leve], 1ank Indonesia, indicated that the policy and strategy of managing Rupiah exchange rate would cause distortion which akvays lead the exchange rate ro disequilibrium position. Keywords: Rupiah Stability, Dornbusch Sticky Price, Disequilibrium Position, Bank Indonesia, Distortion
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) |
| Faculty / Institution: | Fakultas Ekonomika dan Bisnis |
| Depositing User: | Fakultas Ekonomi |
| Date Deposited: | 21 Apr 2020 04:06 |
| Last Modified: | 21 Apr 2020 04:06 |
| URI: | https://eprints.unisbank.ac.id/id/eprint/6463 |
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