IMPLEMENTATION OF ECONOPHYSICS IN EXAMINING BANKING SYSTEM BASED ON INSOLVENCY AND INFLATION USING AGENT-BASED MODEL SIMULATION

• Main Author: Bonifasius Manurung NIM :10212058, Jeremia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22684
• Institution: Institut Teknologi Bandung

Physics has been developing from only dealing with non-self-organizing object towards systems which deal with self-organizing object like human. One of those systems is economics. Recently, this world has been facing an unstable monetary systems that is quite worrying. Anticipating monetary crisis and even further, mitigating monetary crisis is a great concern in this era that is full of risk. Simulating individuals with the system where they interact is one of approaches to see whether there is a way out to anticipate the crisis from within the system. This research is conducted in order to test some parameters in banking system and what changes it might produce if we change its value. The simulation is done using agent-based modelling method. The parameters that is going to be tested are cash-deposit ratio, reserve ratio, and initial save asset. The result of the simulation will be presented in inflation data and how far the system can still work when it is faced with insolvency. The result of simulation shows quite a different type of movements for each parameter of simulation which is cash-deposit ratio, reserve ratio, and initial save. When cash ratio is increased for example, inflation rate becomes lower. Meanwhile in another result when initial save asset is increased, the system is more resistant toward insolvency. This result is not all absolute. The probability is quite vary. The relationship between cash ratio and insolvency is absolute while reserve ratio and inflation is not since it major movement is only 56,2%.