ANALISIS FAKTOR-FAKTOR PERMINTAAN UANG DI INDONESIA PENDEKATAN ERROR CORRECTION MODEL (ECM) TAHUN PENGAMATAN 2001:I - 2013:IV

The main objective of this research is to analyze the factors that influence the demand for money in Indonesia from 2001:I-2013:IV period. The method in this study is Error Correction Model (ECM). The variables in this study were Narrow Money (M1), Gross Domestic Product (GDP), Interest rate, and International reserve.
Based on the analyzis that have been made, the results are Gross Domestic Product, and Interest rate have a significant influence toward demand for money in Indonesia, but International reserve has not a significant toward it, in the long run. While in case of short run, Gross Domestic Product and International reserve have a significant influence toward the demand for money in Indonesia, but Interest rate is not significant influence.