Agus Budi, Santosa and FX, Sugiyanto and Dwisetia, Poerwono DORNBUSCH STICKY PRICE MODEL TEST IN EXPLAINING THE EXCHANGE RATE FLUCTUATION OF RUPIAH TO AMERICAN DOLLAR. IJER.
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Abstract
The stability of Rupiah exchange rate would influence the stability of Indonesian macro economy. Thus, it is important to manage Rupiah exchange rate stabilitazion. This research aimed to test Dornbusch Sticky Price model in explaining Rupiah exchange rate behaviour. In this research, error correction models (ECM) was used as analysis method to find out the long term and short term connections. The results showed that the value of error correction term (ECT) was significantly positive. From this result, it could be concluded that Rupiah 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 level, Bank Indonesia, indicated that the policy and strategy of managing Rupiah exchange rate would cause distortion which always lead the exchange rate to disequilibrium position.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > HG Finance H Social Sciences > HJ Public Finance |
| Faculty / Institution: | Fakultas Ekonomika dan Bisnis |
| Depositing User: | Jati Sasongko Wibowo |
| Date Deposited: | 25 Apr 2020 15:35 |
| Last Modified: | 25 Apr 2020 15:35 |
| URI: | https://eprints.unisbank.ac.id/id/eprint/6494 |
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