Pratomo, Wahyu Ario (2005): Exchange Rate of Indonesia: Does Rupiah Overshoot?
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This research attempts to analyze whether Rupiah overshoots when the crisis hit Indonesia in mid of 1998. It also try to find out the fundamental macroeconomic factors that influence exchange rate when economic crisis hit Indonesia. It uses ordinary least square method and also cointegration in order to see long-term relationship. Furthermore, in order to examine the stability of exchange rate when the exchange rate system changed from managed floating to free floating, this paper apply Chow Test. The result shows that when the economic crisis hit Indonesia, Rupiah overshoots and there has been a structural change of exchange rate after 1998.
|Item Type:||MPRA Paper|
|Original Title:||Exchange Rate of Indonesia: Does Rupiah Overshoot?|
|Keywords:||Overshoot;exchange rate;economic crisis;Indonesia|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply ; Credit ; Money Multipliers
F - International Economics > F3 - International Finance > F31 - Foreign Exchange
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates
|Date Deposited:||28 Feb 2008 16:53|
|Last Modified:||27 Jan 2016 13:30|
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