CURRENCY SUBSTITUTION IN INDONESIA

Abstract

This article describes the phenomenon of currency exchange when there is high inflation in a country or it’s referred to dollarization. The phenomenon of high inflation also occurred in Indonesia in recent years when the economic crisis. This article tries to examine whether there dollarization in 1997 until 2004. The results showed that there has been exchange of currency or dollarization is significant when the economic crisis and its aftermath.

Keywords

• economic crisis, dollarization, currency substituion, high inflation