International Journal of Monetary Economics and Finance (5 papers in press)

Regular Issues

• Does money causes output? evidence from Indonesia  
  by Mahrus Lutfi Adi Kurniawan, Nurul Azizah Az Zakiyyah, Aulia Hapsari Juwita 
  Abstract: The debate on the role of monetary policy on output is growing and is of interest to researchers. Above the debate is the determination of the money-output relationship not only reflects the dynamic relationship between monetary aggregates and economic activity (output) but also involves important issues regarding the effectiveness of monetary policy in real economic activity. This study uses Bayesian vector autoregressive (BVAR) to construct a structural model of money-output in Indonesia. The results show that money plays an important role in output and narrow money has predictive power to the output. Another finding is that the exchange rate has greater variation and response size to output. The implication of the research is that monetary policy should be able to influence money that has a stronger predictive power on output and maintain exchange rate stability.
  Keywords: BVAR; Bayesian vector autoregressive; money-output; structural model; exchange rate.
  DOI: 10.1504/IJMEF.2025.10074077
   
  
• Examining the dynamics of optimal level of inflation nexus economic growth in the Gambia: a threshold model perspective  
  by Foday Joof, Mehdi Seraj, Huseyin Ozdeser 
  Abstract: Better economic performance accompanied by stable and low inflation are the key objectives of monetary policy, especially after the COVID-19 episode. Thus, the Central Bank of The Gambia is face with the laborious duty of accomplishing these dual economic policy objectives, which is often elusive and hard to achieve concurrently, most notably post COVID-19 episode rising inflation rates. Therefore, this paper investigates the optimal association between inflation and growth in The Gambia from 19772021. The threshold autoregressive model (TAR) is use due to appropriate procedures for estimation and inference it provides. The empirical outcome confirms the existence of nonlinearities in the inflation-growth nexus and revealed the presence of 11.69% threshold, above which inflation is unfavourable to economic performance. This result will inform policymakers to adopt the appropriate inflation target to evade the harmful consequences of high inflation whereas reaping the benefit of low inflation.
  Keywords: optimal inflation; GDP growth; threshold autoregressive; broad money; gross capital formation; the Gambia.
  DOI: 10.1504/IJMEF.2025.10074078
   
  
• Stock immunity during the COVID-19 pandemic: financial performance, maximum drawdown, and recovery  
  by Lela Hindasah, Irwan Trinugroho, Atmaji, Doddy Setiawan 
  Abstract: This study investigates the effect of financial performance on stock immunity during the COVID-19 pandemic, focusing on maximum drawdown (MAX) and stock recovery in the context of Indonesia. The results reveal that firms with stronger financial performance demonstrate higher immunity, as indicated by lower MAXs and faster recovery. However, this relationship is not consistent across beneficial and detrimental sectors. Further analysis indicates that firms experiencing lower operating cash flow, larger market capitalisation, higher trading volumes, and increased volatility face greater challenges with more substantial MAXs. Conversely, firms with more independent commissioners and foreign ownership exhibit greater immunity to the impacts of the COVID-19 pandemic. During stock rebounds, better financial performance, lower MAXs, lower valuations, and higher trading volumes contribute to a faster recovery.
  Keywords: stock immunity; financial performance; recovery; MAX; maximum drawdown; market overreaction.
  DOI: 10.1504/IJMEF.2025.10074501
   
  
• Factors influencing investment in internet money market funds: an extended TPB with perceived risk and trust  
  by Zhan Baihui, Ku Maisurah Ku Bahador, Rafeah Mat Saat 
  Abstract: The COVID-19 epidemic has led to the global financial crisis, and investors have turned to money market funds (MMFs) for safety. The development of internet finance has led to changes in Chinas financial environment. Internet money market funds (IMMFs) are favoured by more and more young investors because of their low-risk, high-liquidity operating model. Although low- and middle-income groups have a large amount of investable assets, these assets have not been effectively utilised due to the high investment threshold of traditional banks. This phenomenon highlights wealth inequality and the urgency of investment diversification. The research will analyse the factors that influence university students investment intention in IMMFs based on the extended theory of planned behaviour (TPB).
  Keywords: IMMFs; internet money market funds; MMFs; money market funds; TPB; theory of planned behaviour; perceived risk; trust; investment intention.
  DOI: 10.1504/IJMEF.2025.10074540
   
  
• Paradox of consumer protection in platform development and digital banking performance  
  by Anto Prabowo, Wimboh Santoso, Djoko Suhardjanto, Irwan Trinugroho 
  Abstract: This study examines the effect of bank size on digital performance through the mediating roles of consumer protection and platform development, and explores the interaction between these mediators. Using primary and secondary data from 87 Indonesian commercial banks offering digital services, consumer protection was measured via survey responses, while financial and digital indicators were obtained from official reports and app statistics. Data were analysed using covariance-based structural equation modelling. Results indicate that bank size positively affects both consumer protection and platform development, which in turn positively influence digital performance. However, consumer protection negatively affects platform development, creating a paradox. The findings reveal that while consumer protection directly enhances digital performance, it indirectly diminishes it through platform development. The indirect positive effect of bank size on digital performance is stronger via platform development than via consumer protection due to this paradoxical interaction.
  Keywords: banking; bank size; consumer protection; platform development; digital performance.
  DOI: 10.1504/IJMEF.2025.10074668