Econometric and Fuzzy Modelling of Indonesian Money Demand.

This chapter explores the money demand function for Indonesia in the period 1990-2002. The period is dominated by the Asian crises, which started in 1997. In the aftermath of the crisis, a number of immense financial and economic problems have emerged in Indonesia. A careful analysis of Indonesian money demand is presented. The article also discusses the money demand specification generally and estimates a money demand function and the corresponding error correction model for Indonesia using standard regression techniques. The fuzzy approach and its application to money demand is discussed.