Research Paper
Year: 2021 | Month: April | Volume: 8 | Issue: 4 | Pages: 226-234
DOI: https://doi.org/10.52403/ijrr.20210430
Analysis of Macroeconomics Stability Control of ICI Countries (Indonesia, China, India) Based on Transmission of Monetary Policy through Interest Rate Channel
Annisa Anggreini Siswanto1, Ahmad Albar Tanjung2, Irsad Lubis3
1,2,3Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia
Corresponding Author: Annisa Anggreini Siswanto
ABSTRACT
This study aims to analyze variable control of macroeconomic stability based on monetary policy transmission through interest rate channels in Indonesia, China, India (ICI). Variables used in the interest rate are rill interest rates, consumption, investment, gross domestic product, and inflation. This study used secondary data from 2000 to 2019. The results of the PVECM analysis through the interest rate channel show that the control of economic stability of the ICI country is carried out by investment variables and gross domestic product in the short term, while in the long run it is carried out by consumption, investment and gross domestic product. The results of the IRF analysis are the response stability of all variables is formed in the medium and long term periods. The results of the FEVD analysis show that there are variables that have the greatest contribution in the variable itself either in the short, medium, long term. The results of the interaction analysis of each variable transmission of monetary policy through interest rates can maintain and control the economic stability of the ICI country.
Keywords: Interest Rate Channel, Interest Rate, Consumption, Investment, Gross Domestic Product, Inflation.
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