ANALYSIS OF THE USE OF E-MONEY, MONEY SUPPLY, AND GROSS DOMESTIC PRODUCT ON INTEREST RATE Rini Setyowati, Diana Zuhroh, Sri Werdiningsih, Suprapti, Listyowati
University Of Merdeka Malang
Abstract
This study aims to examine the effect of a direct relationship between the use of e-money and the circulation of money on interest rates, as well as an indirect effect, namely through the intervening variable gross domestic product. This research method uses a statistical model of path analysis. The sample in this study uses secondary data, which comes from the website of Bank Indonesia (BI), and the Central Bureau of Statistics (BPS) since the regulation on electronic money as a means of transaction was officially issued by Bank Indonesia in May 2009-March 2023. The test results, it shows that e-money and money supply each have a significant positive effect on gross domestic product. Gross domestic product has a significant negative effect on interest rates. E-money and money supply have a significant negative effect on interest rates, both directly and indirectly through the intervening variable gross domestic product. The higher the number of e-money uses, and the circulation of money, the greater the gross domestic product, and the lower the interest rate. he results of this study are expected to provide benefits as a prediction of the Indonesian economy in the future, as a result of the issuance of electronic payment instruments. So for the regulators, they can set the right interest rate policy to be able to maintain stable economic conditions.
