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Dual Mone Al Monetary Policy And Income Inequ Y Policy And Income Inequality In Indonesia

Author

Listed:
  • Emira Arefa Aji

    (Universitas Airlangga, Indonesia)

  • Raditya Sukmana

    (Uinversitas Airlangga, Indonesia)

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.

Suggested Citation

  • Emira Arefa Aji & Raditya Sukmana, 2023. "Dual Mone Al Monetary Policy And Income Inequ Y Policy And Income Inequality In Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(3), pages 539-560, September.
    • Handle: RePEc:idn:journl:v:26:y:2023:i:3g:p:539-560
    DOI: https://doi.org/10.59091/2460-9196.2128
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    References listed on IDEAS

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    More about this item

    Keywords

    Conventional monetary policy; Islamic monetary policy; Income inequality; Indonesia; SDGs no. 10;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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