The Effect of Non-Cash Payments on the Money Supply in Indonesia During the Covid-19 Pandemic Period

Hamas Faza; Siti Aisyah Tri Rahayu; Lukman Hakim

doi:10.11594/ijmaber.04.11.06

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Nov 21, 2023

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Abstract

The development of non-cash payments is predicted to have an effect on real money demand, not only in Indonesia. The use of electronic money in Indonesia itself continues to increase especially in the covid-19 pandemic and it supported by technological developments. The purpose of this study was to analyse the effect of non-cash payments on real money demand in Indonesia. The method used is Vector Error Correction Model (VECM) using secondary data from Januari 2019 to December 2022. The independent variable is the amount of money circulated by Bank Indonesia, and the independent variables used are the value of debit / ATM card transactions, credit cards, and e -money. The results indicate that in the long run debit cards and e-money have a significant negative effect on money supply, while credit cards have positive effect on money supply but it’s not significan. While in the short term, all variables debit cards, credit cards and e-money are not significant on money supply.

This work is licensed under a Creative Commons Attribution 4.0 International License.

Author Biographies

Hamas Faza, Master Of Economics Development Studies, Sebelas Maret University, Surakarta 57124, Indonesia

Master of economics development studies, Departement of economics &bussiness

Siti Aisyah Tri Rahayu, Faculty Of Ecomonics & Business, Sebelas Maret University, Surakarta 57124, Indonesia

Lecturer in Sebelas Maret University Department of Economics

Lukman Hakim, Faculty Of Ecomonics & Business, Sebelas Maret University, Surakarta 57124, Indonesia

Lecturer at Depertement of Economics Development Studies, Faculty of Economics & Business

How to Cite

Faza, H., Tri Rahayu, S. A., & Hakim, L. (2023). The Effect of Non-Cash Payments on the Money Supply in Indonesia During the Covid-19 Pandemic Period. International Journal of Multidisciplinary: Applied Business and Education Research, 4(11), 3837-3847. https://doi.org/10.11594/ijmaber.04.11.06

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