| dc.description.abstract | This study examines financial stability as a
system that has a crucial role in the
economy. The financial system can increase
the capacity of the national economy.
However, in that role, it is necessary to
remember that financial instability
occurrence results in systemic risk. In
preventing or reducing the risk of the
possibility of financial system instability, it
requires identification using several
indicators of financial system stability. The
formation of the Financial Stability Index in
Indonesia, which was built based on the
development pattern of two elements,
namely banking and money markets, is one
of the applicable ways to measure financial
system stability. Based on the results of the
analysis using explanatory factors and index
calculation of the forming indicators of the
financial system stability and the formation
of Financial Stress Index on inflation, the
Financial Stress Index can be used to
measure the stability of the financial sector
in Indonesia. | en_US |
