Debit and Credit Cards: Money Velocity Risks

Payment system innovations as the efforts to meet the people’s needs have recently risen several new non-cash-based payment instruments, such as card-based payment transactions. The upheaval of card-based non-cash transactions has indirectly shifted the role of cash in the society. This research aim...

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Autores principales:	Hari Setia Putra, Mutia Huljannah, Ali Anis, Zul Azhar
Formato:	article
Lenguaje:	EN
Publicado:	Universitas Muhammadiyah Yogyakarta 2021
Materias:	debit card credit card money velocity vector error correction model Economic theory. Demography HB1-3840
Acceso en línea:	https://doaj.org/article/2d14f83e4f224f8d88e499d54b9ba7f3
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spelling	oai:doaj.org-article:2d14f83e4f224f8d88e499d54b9ba7f32021-11-05T03:54:11ZDebit and Credit Cards: Money Velocity Risks1411-99002541-550610.18196/jesp.v22i2.11208https://doaj.org/article/2d14f83e4f224f8d88e499d54b9ba7f32021-10-01T00:00:00Zhttps://journal.umy.ac.id/index.php/esp/article/view/11208https://doaj.org/toc/1411-9900https://doaj.org/toc/2541-5506Payment system innovations as the efforts to meet the people’s needs have recently risen several new non-cash-based payment instruments, such as card-based payment transactions. The upheaval of card-based non-cash transactions has indirectly shifted the role of cash in the society. This research aims to see the effect of cards as payment instruments represented by both debit and credit cards on money velocity in Indonesia within the period of 2016M1 to 2020M6 using the VECM (Vector Error Correction Model) analysis method. The research findings show that long-run card-based payment instrument has a significant effect on money circulation in Indonesia. It means that money velocity in Indonesia is not constant. Money velocity is a key concept in monetary theories and an important element for monetary analysis. Therefore, it is important for central bank to monitor and understand the money velocity trends to provide long-term benefits. The research findings are also expected to provide an additional insight to policymakers, especially central bank as monetary authority doe to the possibly occurring risks caused by the money circulation instability in economy.Hari Setia PutraMutia HuljannahAli AnisZul AzharUniversitas Muhammadiyah Yogyakartaarticledebit cardcredit cardmoney velocityvector error correction modelEconomic theory. DemographyHB1-3840ENJurnal Ekonomi & Studi Pembangunan, Vol 22, Iss 2, Pp 228-243 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	debit card credit card money velocity vector error correction model Economic theory. Demography HB1-3840
spellingShingle	debit card credit card money velocity vector error correction model Economic theory. Demography HB1-3840 Hari Setia Putra Mutia Huljannah Ali Anis Zul Azhar Debit and Credit Cards: Money Velocity Risks
description	Payment system innovations as the efforts to meet the people’s needs have recently risen several new non-cash-based payment instruments, such as card-based payment transactions. The upheaval of card-based non-cash transactions has indirectly shifted the role of cash in the society. This research aims to see the effect of cards as payment instruments represented by both debit and credit cards on money velocity in Indonesia within the period of 2016M1 to 2020M6 using the VECM (Vector Error Correction Model) analysis method. The research findings show that long-run card-based payment instrument has a significant effect on money circulation in Indonesia. It means that money velocity in Indonesia is not constant. Money velocity is a key concept in monetary theories and an important element for monetary analysis. Therefore, it is important for central bank to monitor and understand the money velocity trends to provide long-term benefits. The research findings are also expected to provide an additional insight to policymakers, especially central bank as monetary authority doe to the possibly occurring risks caused by the money circulation instability in economy.
format	article
author	Hari Setia Putra Mutia Huljannah Ali Anis Zul Azhar
author_facet	Hari Setia Putra Mutia Huljannah Ali Anis Zul Azhar
author_sort	Hari Setia Putra
title	Debit and Credit Cards: Money Velocity Risks
title_short	Debit and Credit Cards: Money Velocity Risks
title_full	Debit and Credit Cards: Money Velocity Risks
title_fullStr	Debit and Credit Cards: Money Velocity Risks
title_full_unstemmed	Debit and Credit Cards: Money Velocity Risks
title_sort	debit and credit cards: money velocity risks
publisher	Universitas Muhammadiyah Yogyakarta
publishDate	2021
url	https://doaj.org/article/2d14f83e4f224f8d88e499d54b9ba7f3
work_keys_str_mv	AT harisetiaputra debitandcreditcardsmoneyvelocityrisks AT mutiahuljannah debitandcreditcardsmoneyvelocityrisks AT alianis debitandcreditcardsmoneyvelocityrisks AT zulazhar debitandcreditcardsmoneyvelocityrisks
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Debit and Credit Cards: Money Velocity Risks

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