Does Monetary Policy and Asean Stock Market Affect Jakarta Composite Index (IHSG)?
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2018, Vol 8, Issue 12
Abstract
This study aims to analyze the effect of monetary policy and Kuala Lumpur Stock Exchange (KLSE) on the Jakarta Composite Index (IHSG) in Indonesia. The monthly secondary data from June 2005 to June 2016 is used in this analysis by using Vector Autoregressive (VAR) Model. The result shows that both exchange rate and KLSE have positive sign and significant, while BI-RATE has negative sign and significant. Based on the results, the authors suggested that the government in this case Indonesian Central Bank has to be careful in deciding the benchmark interest rate (BI-Rate) to maintain the stability of exchange rate, so that IHSG was able to show a positive trend.
Authors and Affiliations
Abd. Jamal, Julfahmi Salim, Chenny Seftarita, Mohd. Sadad Mahmud, Wan Mohd Nazri Wan Daud, Puspa Liza Ghazali, Norfadzilah Rashid
Keywords
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- EP ID EP593909
- DOI 10.6007/IJARBSS/v8-i12/5120
- Views 56
- Downloads 0
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