1. Modification of the logistics growth model of IDR exchange rate against USD by considering the money supply.
- Author
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Wibowo, Padmadi Cahyo and Sutanto
- Subjects
- *
MONEY supply , *FOREIGN exchange rates , *INTEREST rates , *PRICE inflation , *PRICE levels - Abstract
The rupiah exchange rate is the price level between two different currencies. Its movements against United States Dollar (USD) may strengthen, weaken or stabilize from time to time. These movements can be caused by money supply, interest rates, and inflation rates. These three phases result in rupiah exchange rate movements tending to follow the logistical curve. The logistics growth model is applied to the rupiah exchange rate to determine the movement of the exchange rate following the logistics curve. This study discussed the modification of the logistics growth model of the Indonesian Rupiah (IDR) exchange rate against USD by considering the money supply factor and its comparison with the model without modification. The logistics growth model was modified by adding the money supply function against time. After modification, based on the accuracy of both models, MAPE was obtained by 23% for the first model and 22% for the modified model. It indicated that the logistical growth model in this study had better represented the IDR exchange rate against USD. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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