IMPACT OF REDENOMINATION ON PRICE, VOLUME, AND VALUE OF TRANSACTION: AN EXPERIMENTAL ECONOMIC APPRAOCH
Keywords:
Redenomination, Inflation, Economic Growth, Experiment
Abstract
Redenomination is a simplification of nominal value of currency by reducing digit (zero number) without reducing the real value of the currency. This paper provide an overview of the impact of redenomination to changes in transaction prices, transaction value and number of transactions using experimental methods. The results showed that the most substantial price reduction on the elastic goods can occur in conditions of low economic growth and high inflation. Price reductions also occur in conditions of high economic growth and low inflation. Based on results, there is no change between before and after redenomination on the number of transactions. So redenomination would not change the number of transactions in elastic goods. Conditions which can change the value of the transaction is low growth and high growth in high inflation condition. Conditions of high inflation and low growth will decrease the value of the transaction while the condition of high inflation with high growth will increase the value of the transaction.Downloads
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References
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Gamble. A, Garling. T, Charlton. J, & Ranyard. R. (2002). Euro Illusion, European Psychologist 7, 4: 302-311.
Hobijn. Bart, F. Ravena, dan A. Tambalotti. (2006). Menu Costs at Work: Restaurant Prices and the Introduction of the Euro. The Quarterly Journal of Economics, 2006, 121 (3): 1103-1131.
Ioana. D. (2005). The National Currency Re-denomination Experience in Several Countries: A Comparative Analysis. International Multidisciplinary Symposium Universitaria Simpro.
Juanda. B. (2009). Metodologi Penelitian Ekonomi dan Bisnis. Bogor. Indonesia: IPB Press.
Juanda. B. (2010). Ekonomi Eksperimental untuk Pengembangan Teori Ekonomi dan Pengkajian Suatu Kebijakan. Orasi Guru Besar IPB, 25 September 2010
Juanda. B. (2012). Experimental Economics in Indonesia: Lesson Learned and Best Practices. Workshop on Experimental Economics, Bogor 6 September 2012
Juanda. B, N. Fitri, F. Fardilah, dan M.P.D. Manik. (2010). Analisis Perbandingan Dampak Kebijakan Menyelamatkan Bank Century dengan kebijakan Menutup Bank Century dengan Metode Eksperimen. Bogor. Departemen Ilmu Ekonomi, FEM-IPB.
Kesumajaya, IWW. (2011). Redenominasi Mata Uang Rupiah Merupakan Bagian dari Tugas Bank Indonesia untuk Mengatur dan Menjaga Kelancaran Sistim Pembayaran di Indonesia. GaneC Swara Vol 5 No.1.
Lianto. J dan Suryaputra. R. (2012). The Impact of Redenomination in Indonesia from Indonesian Citizens’ Perspective. Procedia - Social and Behavioral Sciences 40: 1 – 6
Marques. JF dan Dehaene. S. (2004). Developing Intuition for Price in Euros. Journal of Experimental Psychology, 10 (3): 148-155.
Mehdi. S dan Motiee. R. (2012). An investigating Zeros Elimination of the National Currency and Its Effect on National Economy (Case study in Iran). European Journal of Experimental Biology, 2(4):1137-1143.
Mosley. L. (2005). Dropping Zeros, Gaining Credibility? Currency Redenomination in Developing Nations. Annual Meeting of The American Political Science Association. Washington DC.
Pambudi. Andika. (2014). Faktor-faktor yang Memengaruhi Keberhasilan Redenominasi Mata Uang: Pendekatan Historis dan Eksperimental, Thesis, Sekolah Pascasarjana. IPB.
Siaran Pers Bank Indonesia No. 12/38/PSHM/Humas
Suhendra. E dan S.W. Handayani. (2012). Impacts of Redenomiantion on Economics Indicators. International Conference on Eurasian Economies 2012.
Wibowo. B. (2013). Ilusi Nilai Uang Redenominasi. Harian Bisnis Kontan, Kamis 21 Februari 2013.
Published
2016-12-29
How to Cite
Astrini, D., Juanda, B., & Achsani, N. (2016). IMPACT OF REDENOMINATION ON PRICE, VOLUME, AND VALUE OF TRANSACTION: AN EXPERIMENTAL ECONOMIC APPRAOCH. Buletin Ekonomi Moneter Dan Perbankan, 19(2), 207-238. https://doi.org/10.21098/bemp.v19i2.630
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Buletin Ekonomi Moneter dan Perbankan / Bulletin of Monetary Economics and Banking is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
