Does the development of non-cash payment affect broad money in Indonesia / Dwi Nita Aryani, Siti Munfaqiroh and Endys Kartikasari

The purpose of this study is to analyse the effect of development of non-cash payment on broad money (M2) in short-term and long run in Indonesia. This research used time series of data namely number of transaction of credit card, debit card, e-money, Bank of Indonesia Real Time Gross Settlement (BI-RTGS) and National Clearance System of Bank of Indonesia (BI-NCS) transaction during 2012-2017. Error Correction Model (ECM) is employed as the analysis model. The result exhibits that transaction volume of Credit Card, Debit Card, E- money, BI-RTGS and BI-NCS, simultaneously affect broad money. Partially, BI-RTGS and BI-NCS are the most significant factors influence broad money in short term in Indonesia.