ANALISIS PENGARUH E-MONEY TERHADAP INFLASI DI INDONESIA

Abstract

The development of technology in Indonesia is quite rapid, making social and cultural life
without boundaries between time and space. The development of technology in the economy
led man to a more efficient age of fulfilling his life’s needs. One of the innovations in economics
is technology-based financial services or FinTech (FinTech) which has been widely used in emoney
or electronic money. E-money can have an impact on the economy because e-money is
money in circulation that can affect inflation. The current era of globalization is driving
technology to grow, utilizing optimal financial services technologies to achieve sustainable
development goals (SDGs). It aims to create an inclusive financial system, to improve public
welfare. However, access to financial services in the community is still very low. The presence of
FinTech is one of the solutions to improve people’s financial services. But e-money can also
drive inflation if the transaction value is not regulated. This study analyzed the effect of
electronic money on inflation in Indonesia. In this study, the VECM test was used to determine
the influence of the BI rate independent variable, the amount of money circulating, the volume
of e-money and the nominal e-money on the dependent variable of inflation. The research found
inflation affects the amount of money circulating and nominal e-money. The volume of e-money
has an effect on inflation and the nominal e-money affects interest rates.