Analysis Effect of Cashless Payments in the Digitalization Era On Money Supply in Indonesian

Rohayatun Hasanah, Maulidyah Indira Hasmarini

Abstract


The purpose of this study is to analyze the impact of non-cash payments in the current digitalization era on the money supply in Indonesia. The independent variables used are e-money transaction volume, ATM/debit card transaction volume, debit card transaction volume, inflation, interest rates, and economic growth. Bank Indonesia and the Central Bureau of Statistics provided monthly time series data from January 2016 to July 2022. The analysis technique used is the Engle-Granger Error Correction Model. The results of the study show that in the short term, the variables of inflation, the volume of ATM and debit card transactions, and gross domestic product have a positive and significant effect on the money supply. Meanwhile, in the long run, e-money variables, credit card transaction volume, ATM/debit card transaction volume, and interest rates have a significant effect on the money supply in Indonesia.

Keywords


Money supply, non-cash payments, inflation, interest rates, gross domestic product, ECM.

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References


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DOI: https://doi.org/10.30596/miceb.v1i0.216

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