DUAL MONETARY POLICY AND INCOME INEQUALITY IN INDONESIA

Emira Arefa Aji, Raditya Sukmana

Research output: Contribution to journalArticlepeer-review

Abstract

This paper examines the effect of Indonesia’s dual monetary policy on income inequality. This issue of inequality in Indonesia remains significant, and failure to address it could lead to a major economic and social conflict. The studies of monetary policy on income inequality are still inconclusive. In Indonesia, there are limited literatures that show the effect of monetary policy on income inequality. This study shows that both monetary policies significantly affect income inequality in Indonesia where in the long run, Islamic monetary policy seems to not affecting the inequality. Hence, it can be concluded that the Islamic monetary system should be encourage to improve the inequality in Indonesia.

Original languageEnglish
Pages (from-to)539-560
Number of pages22
JournalBuletin Ekonomi Moneter dan Perbankan
Volume26
Issue number3
DOIs
Publication statusPublished - 2023

Keywords

  • Conventional monetary policy
  • Income inequality
  • Indonesia
  • Islamic monetary policy
  • SDGs no. 10

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