Record Details

REVISITING ANALYSIS OF THE ROOT CAUSES ON FINANCIAL CRISIS IN ISLAMIC PERSPECTIVE

Journal of Islamic Monetary Economics and Finance

View Archive Info
 
 
Field Value
 
Title REVISITING ANALYSIS OF THE ROOT CAUSES ON FINANCIAL CRISIS IN ISLAMIC PERSPECTIVE
 
Creator Luik, Mega Tria Rizki
Fatoni, Ahlis
 
Description Steady financial system stability is important in an economy. The financial crisis showed a constantly recurring problem that has not been resolved completely. Macroprudential policy which became the term savior after the subprime mortgage crisis was essentially a temporary not eliminate the root causes of the problems of the financial crisis. This study attempts to revise the root causes of the financial crisis in the perspective of Islam by using three approaches namely Vector Error Correction Model (VECM ), Error Correction Model (ECM), and Distributed-Lag Autoregressive (ARDL). The result of this study that the consistence of ribâ (interest rate) variable as the main factor of crisis; ribâ increases the inflation and decreases the growth. The IRF (impluse response function) result and FEVD (forcast error varian decomposition) show 21.87% interest rate (INT) increases the inflation and decreases the growth by 9.5%, while profit-loss sharing (PLS) variable contributes to decreases the inflation by 0.02% and increases the growth by 0.61%, reciprocally with ECM approach that interest rate (INT) has positive effect to inflation and  negative effect to growth (financial crisis) vice versa PLS sicnificantly has negative effect to inflation and positive effect to grwoth, whereas ARDL approach shows that PLS increases the grwoth at long and short run but also increases the inflation at long run. Another conventional variabels consistantly contribut to financial crisis acording to all aproachs; volatile food (VFP) and administred price (ADM).
 
Publisher Bank Indonesia
 
Date 2018-08-28
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://jimf-bi.org/index.php/JIMF/article/view/745
10.21098/jimf.v4i1.745
 
Source Journal of Islamic Monetary Economics and Finance; Vol 4 No 1 (2018): AUGUST; 39 - 60
2460-6618
2460-6146
 
Language eng
 
Relation http://jimf-bi.org/index.php/JIMF/article/view/745/719
 
Rights Copyright (c) 2018 Mega Tria Rizki Luik, Ahlis Fatoni