Title: INFLUENCE OF ECONOMIC AND NON-ECONOMIC FACTORS ON THE EXCHANGE RATE OF THE RUPIAH AND THE US DOLLAR

Author: DHYAH HARJANTI

Item Type : Thesis (Thesis)

Affiliations: Master of Management Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

 

Abstract

The monetary crisis that occurred in Indonesia at the same time as other regions in Southeast Asia, East Asia, Russia and Latin America is a reflection of a combination of internal economic problems in countries experiencing crisis and external turmoil of a global nature. This crisis is different from previous crises, not only because its intensity is so deep, but also because it occurs at a time when the global financial system is already so complex, both in terms of structure and problems. One of the main indicators of a crisis is exchange rate fluctuations. Various efforts by the Indonesian monetary authority to maintain the stability of the rupiah exchange rate against foreign currencies, especially the US dollar, have been made, but the value of the rupiah remains uncontrolled. This research tests one approach to determining exchange rates, namely the portfolio balance approach, by making modifications in the form of adding unexpected event variables as dummy variables in the model to find out how non-economic variables influence value fluctuations. The hypothesis tested in this research is that domestic money supply, domestic debt, foreign debt, international interest rates and unexpected event variables have a significant influence on the US dollar, both partially and jointly. The same. From the results of data processing using the regression method, it can be concluded that domestic money supply, domestic debt, foreign debt, international interest rates and unexpected event variables have a significant influence on the US dollar, both partially and individually. together. This means that fluctuations in the rupiah exchange rate are not only influenced by economic factors, but are also influenced by non-economic factors which are included in the unexpected event variable.

 

Keywords: fluctuation, rupiah value, economic variables, money supply, domestic obligation, foreign obligation, international interest rate, non-economic variables, unexpected event, political and social instability

 

Sources: http://repository.unair.ac.id/35521/