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It is generally admitted that a relationship exists between financial system development and economic growth, although the nexus between these two is complex. Due to the advancement of technology, P2P lending has become a growing industry in Indonesia as an alternative credit different from a conventional bank, which also might contribute to fostering economic growth. This paper's purpose is to analyze the contribution of P2P lending to Product Domestic Regional Bruto (PDRB) in 5 provinces in Java, which are Banten, DKI Jakarta, West Java, Central Java, DI Yogyakarta, and East Java, using fixed effect panel regressions from Q1-2020 to Q2-2022 period. This paper finds a significant and positive impact of P2P lending on real PDRB growth, with a 0,0754% magnitude. Although there is a positive impact, many challenges still need to be overcome in the P2P lending industry. [ABSTRACT FROM AUTHOR]

Introduction/Main Objectives: This study aims to estimate the impact of capital inflows on property prices and financial system stability (FSS) in ASEAN-5 and the simultaneous relationship between the two dependent variables. During the observation period of this study, there were large capital inflows to ASEAN 5 countries after the 2008-2009 financial crisis; on the other hand property prices showed an increase in that period. Background Problems: This study indicates the simultaneous relationship between two dependent variables. In fact, using only a single equation for variables that have a simultaneous relationship can cause endogeneity problems, so the results obtained become unreliable/biased. Novelty: The novelty of our research is we fill a gap in the previous studies by examining the relationship of property prices and financial system stability with the simultaneous method so as to solve the endogeneity problem that exists. Research Methods: We use the 2SLS simultaneous panel model to solve endogeneity problems. Finding/Results: The results show that the massive capital inflows to ASEAN-5 countries caused a significant increase in property prices. Conclusion: This study confirms that property prices and financial system stability have simultaneous relationships. On the one hand, the impact of property prices on the financial system stability is positive and significant. On the other hand, testing the effect of the financial system stability on property prices does not show significant results. [ABSTRACT FROM AUTHOR]

This study aims to analyze the role of monetary policy, including the spillover of the US Federal Reserve (Fed) monetary policy, in the existence of herding behavior in the Indonesian stock market. We used beta herding to measure the level of herding behavior and analyze the relationship between monetary policy and beta herding using the VECM model, as well as IRF and FEVD. This study shows that monetary policy plays a role in the existence of herding behavior in the Indonesian stock market. Although the effect of monetary policy on herding behavior is relatively small, Fed monetary policy shocks have a greater effect on the existence of herding behavior in the Indonesian stock market. The credibility of Bank Indonesia (BI) and the Fed may play a role in shaping investors' expectations. Therefore, policymakers have to take into account the volatility of asset prices in formulating monetary policy. [ABSTRACT FROM AUTHOR]

The global financial crisis that occurred from 2007 through to 2009 caused a decline in economic performance in almost all countries. This study analysed the contagion and spillover effect from the developed stock market to the stock markets in five ASEAN countries using the DCC-GARCH model. The result showed that there was a significant increase of the DCC's coefficient on the crisis period confirming the contagion effect from the markets of the developed countries to those of five ASEAN stock markets, except Dow Jones Index to PSEI Philippines, and HSI to KLSE. Except for Malaysia, the spillover effect during the crisis period was greater than the pre-crisis period; on the other hand, the effect of volatility on the movement of stock returns in the five ASEAN countries was smaller in the crisis period. [ABSTRACT FROM AUTHOR]

This research examines the relationship between financial development and inflation in Indonesia during the period of 1980 to 2016. In order to do that, it uses autoregressive distributed lag (ARDL) bound test to investigate the existence of long-run cointegration and Wald test to examine both short- and long-run Granger causality. Three different proxies are used to measure financial development; credit to private sector as a percentage of GDP, broad money (M2) as a percentage as GDP, and Financial Development Index. It is found, from empirical results, that long-run cointegration exists between financial development and inflation. It is also found that past value of both variables causes the future value of each other, but through different channels. Lastly, while inflation affects financial development negatively, financial development affects inflation positively. [ABSTRACT FROM AUTHOR]