Melola Discovery

← Melola Discovery

Journal

Impact of Inflation, Interest Rates, And Money Supply on Deposit Funds

Economics Development Analysis Journal · Vol. 13 No. 4 (2025)

DOI
10.15294/edaj.v13i4.13910
ISSN
2502-2725, 2252-6560
Published
2025-01-21
Publisher
Universitas Negeri Semarang
Language
eng

Abstract

Deposits are straightforward investment instruments that offer fixed interest over a specified period, serving as a profitable product for banks. They play a crucial role in supporting banking operations, particularly within the internal scope of the institution. This study aims to examine the causal relationships between deposit interest rates, inflation, and money supply on the total deposits held by banks. A Vector Error Correction Model (VECM) is employed to investigate these relationships in both the short and long term. The analysis reveals that inflation and money supply significantly influence the volume of deposits in the short term. Conversely, deposit interest rates do not exhibit a substantial short-term impact on the total funds deposited. In the long term, all independent variables—deposit interest rates, inflation, and money supply—demonstrate a considerable effect on the amount of deposited funds. These findings provide valuable insights for banks, enabling them to optimize their funding strategies through deposit products while addressing challenges posed by macroeconomic fluctuations

Keywords

Collaboration network of the authors

34 authors · 102 co-authorship links · 4 across different organisations

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • UIN Sunan Ampel Surabaya
  • Badan Pusat Statistik
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Hani KhaulasariUIN Sunan Ampel Surabaya5
Dian Candra Rini NovitasariUIN Sunan Ampel Surabaya4
Achmad Teguh WibowoUIN Sunan Ampel Surabaya3
Putroue Keumala IntanUIN Sunan Ampel Surabaya3
Nurissaidah UlinnuhaUIN Sunan Ampel Surabaya3
Wika Dianita UtamiUIN Sunan Ampel Surabaya2
Silvia Kartika SariUIN Sunan Ampel Surabaya2
Latifatun Nadya DesinainiUIN Sunan Ampel Surabaya2
Ida PurwantiUIN Sunan Ampel Surabaya2
Yahya Vigo Tri SaputraUIN Sunan Ampel Surabaya2
Unix Izyah ArfiantiUIN Sunan Ampel Surabaya1
Nanang WidodoAffiliation unknown1
Ghina Salsabila FirdausUIN Sunan Ampel Surabaya1
Ahmad Teguh WibowoAffiliation unknown1
Diah Devi PramestiUIN Sunan Ampel Surabaya1
Husna Nur LailiUIN Sunan Ampel Surabaya1
Aris FananiUIN Sunan Ampel Surabaya1
Luluk WulandariUIN Sunan Ampel Surabaya1
Nanida Jenahara ZaenUIN Sunan Ampel Surabaya1
Ilmiatul MardiyahUIN Sunan Ampel Surabaya1
Dewi SulistiyawatiBadan Pusat Statistik1
Dian YuliatiUIN Sunan Ampel Surabaya1
Suyesti YusiUIN Sunan Ampel Surabaya1
Mayandah FarmitaUIN Sunan Ampel Surabaya1
Fery FirmansyahAffiliation unknown1
Abdulloh HamidUIN Sunan Ampel Surabaya1
Syamil Waris Dien MuhammadUIN Sunan Ampel Surabaya1
Yanuwar ReinaldiUIN Sunan Ampel Surabaya1
Silvie Afifatuz ZulfahAffiliation unknown1
Abd. Rachman AssegafAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/edaj/oai, first harvested 5 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc) 
<oai_dc:dc xmlns="http://www.openarchives.org/OAI/2.0/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:oai_dc="http://www.openarchives.org/OAI/2.0/oai_dc/" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://www.openarchives.org/OAI/2.0/oai_dc/  http://www.openarchives.org/OAI/2.0/oai_dc.xsd">
	<dc:title xml:lang="en">Impact of Inflation, Interest Rates, And Money Supply on Deposit Funds</dc:title>
	<dc:creator xml:lang="en">Yayan Luthfi Khoirina</dc:creator>
	<dc:creator xml:lang="en">Yuniar Farida</dc:creator>
	<dc:creator xml:lang="en">Moh. Hafiyusholeh</dc:creator>
	<dc:creator xml:lang="en">Hani Khaulasari</dc:creator>
	<dc:subject xml:lang="en">Deposit</dc:subject>
	<dc:subject xml:lang="en">Deposit Interest Rate</dc:subject>
	<dc:subject xml:lang="en">Inflation</dc:subject>
	<dc:subject xml:lang="en">Money Supply</dc:subject>
	<dc:subject xml:lang="en">Deposit Funds</dc:subject>
	<dc:subject xml:lang="en">Vector Error Correction Model</dc:subject>
	<dc:subject xml:lang="en">VECM</dc:subject>
	<dc:description xml:lang="en">Deposits are straightforward investment instruments that offer fixed interest over a specified period, serving as a profitable product for banks. They play a crucial role in supporting banking operations, particularly within the internal scope of the institution. This study aims to examine the causal relationships between deposit interest rates, inflation, and money supply on the total deposits held by banks. A Vector Error Correction Model (VECM) is employed to investigate these relationships in both the short and long term. The analysis reveals that inflation and money supply significantly influence the volume of deposits in the short term. Conversely, deposit interest rates do not exhibit a substantial short-term impact on the total funds deposited. In the long term, all independent variables—deposit interest rates, inflation, and money supply—demonstrate a considerable effect on the amount of deposited funds. These findings provide valuable insights for banks, enabling them to optimize their funding strategies through deposit products while addressing challenges posed by macroeconomic fluctuations</dc:description>
	<dc:publisher xml:lang="en">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2025-01-21</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/journals/edaj/article/view/13910</dc:identifier>
	<dc:identifier>10.15294/edaj.v13i4.13910</dc:identifier>
	<dc:source xml:lang="en">Economics Development Analysis Journal; Vol. 13 No. 4 (2024): Economics Development Analysis Journal</dc:source>
	<dc:source>2502-2725</dc:source>
	<dc:source>2252-6560</dc:source>
	<dc:source>10.15294/edaj.v13i4</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/journals/edaj/article/view/13910/3347</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2025 Economics Development Analysis Journal</dc:rights>
</oai_dc:dc>