Title:
ANALYSIS OF ISLAMIC MONETARY POLICY TRANSMISSION AMID THE COVID-19 PANDEMIC

Authors:
Hadini Arsy Hasan, Lukman Hakim, Siti Aisyah Tri Rahayu, Indonesia

Abstract:

This study aims to analyze the transmission mechanism of the Islamic monetary system through the interest rate and exchange rate channels. The data used in this study is monthly data in the form of time series starting from Bank Indonesia and Financial Services Authority January 2015 to December 2020. The model uses simultaneous equations and the two stage least square method. Data processing using stationary test. The results of the monetary transmission mechanism on the interest rate channel show that the exchange rate, inter-Islamic money market and profit-sharing rate have a positive effect and show a positive significance, but the total Islamic bank financing has a negative effect. while the monetary policy transmission mechanism of the exchange rate channel gives the result that interest rates and total financing have a positive and positive significance on the contrary, inflation has no effect and the result is negative significance.