ISLAMIC MONEY DEMAND IMPLICATIONS BASED ON MACROECONOMIC AND SOCIAL VALUE VARIABLES IN INDONESIA
Eva Misfah Bayuni, Muhammad Yunus, Mujahid, Shifa Nurul Fadhilah, Yusuf Azis Yusrizal, Silvani Fauziyyah Adilla,

Faculty of Shari^a, Universitas Islam Bandung

Abstract

This study aims to determine the implications of Islamic money demand based on macroeconomic and social variables value in Indonesia. The used data is secondary data of 2010-2019 time series. The method of this research is using Error Correction Model (ECM) and Vector Autoregressive (VAR). E-views 9 program is used for processing data. The result of this research indicates that there are implications for a variety of Islamic Money Demand in Indonesia based on macroeconomic and social value variables in Indonesia. The result of ECM and VAR estimation showed that macroeconomic variable and social values only zakat variable significantly affect to M0, M1Islam and M2Islam. While based on the coefficient value, the macroeconomic implications of variables on the demand for Islamic money are GDP, exchange rate and inflation. on social value, the value of the zakat coefficient has the greatest value compared to infaq shadaqah on the Islamic money demand.

Keywords: Islamic money demand, macroeconomic, and social values

Topic: Economic Welfare in Terms of Islamic Perspective