Monetary Policy Transmission and Credit Cards: Evidence from Indonesia

Rahman, R Eki and Prabheesh, K P (2019) Monetary Policy Transmission and Credit Cards: Evidence from Indonesia. Buletin Ekonomi Moneter dan Perbankan, 22 (2). pp. 137-162. ISSN 1410-8046

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This paper empirically tests the dynamics of credit cards and monetary policy in thecontext of Indonesia. Using monthly data from 2006 to 2018 and a structural vectorautoregressive model, our findings indicate that credit card usage is mainly drivenby Indonesia’s fast economic growth over the last decade, which indeed reflects therole of credit cards in consumption smoothing. The study also finds that monetarypolicy transmission through the lending channel is weak, with a more prevalent rolefor exchange rates and global oil prices in the transmission process.

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Item Type: Article
Subjects: Arts > Liberal arts
Divisions: Department of Liberal Arts
Depositing User: Team Library
Date Deposited: 17 Sep 2019 05:51
Last Modified: 17 Sep 2019 05:51
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