Analysis of Factors Influencing Inflation in Indonesia
This research is aimed at analysing some factors that affect inflation rate in Indonesia during period 1997-2005. Using cointegration analysis and error correction model this research will investigate the relationship between independent variable and dependent variables in both short run and long r...
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2009-05-01
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| Series: | Economic Journal of Emerging Markets |
| Online Access: | https://jurnal.uii.ac.id/JEP/article/view/356 |
| _version_ | 1811288968298233856 |
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| author | Endri Endri |
| author_facet | Endri Endri |
| author_sort | Endri Endri |
| collection | DOAJ |
| description |
This research is aimed at analysing some factors that affect inflation rate in Indonesia during period 1997-2005. Using cointegration analysis and error correction model this research will investigate the relationship between independent variable and dependent variables in both short run and long run. In the long run, the monetary policy instrument (SBI rate), output gap and exchange rate have significant influence on inflation rate under floating exchange rate regime. In the short-run, the speed of adjustment of exchange rate is higher and significant for corrected to its long run equilibrium.
Keywords: inflation, transmition effect, cointegration, error correction model
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| first_indexed | 2024-04-13T03:46:35Z |
| format | Article |
| id | doaj.art-1dc00b65985d4d1a9d421a2ec4fc5722 |
| institution | Directory Open Access Journal |
| issn | 2086-3128 2502-180X |
| language | English |
| last_indexed | 2024-04-13T03:46:35Z |
| publishDate | 2009-05-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj.art-1dc00b65985d4d1a9d421a2ec4fc57222022-12-22T03:03:59ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2009-05-0113110.20885/ejem.v13i1.356Analysis of Factors Influencing Inflation in IndonesiaEndri Endri This research is aimed at analysing some factors that affect inflation rate in Indonesia during period 1997-2005. Using cointegration analysis and error correction model this research will investigate the relationship between independent variable and dependent variables in both short run and long run. In the long run, the monetary policy instrument (SBI rate), output gap and exchange rate have significant influence on inflation rate under floating exchange rate regime. In the short-run, the speed of adjustment of exchange rate is higher and significant for corrected to its long run equilibrium. Keywords: inflation, transmition effect, cointegration, error correction model https://jurnal.uii.ac.id/JEP/article/view/356 |
| spellingShingle | Endri Endri Analysis of Factors Influencing Inflation in Indonesia Economic Journal of Emerging Markets |
| title | Analysis of Factors Influencing Inflation in Indonesia |
| title_full | Analysis of Factors Influencing Inflation in Indonesia |
| title_fullStr | Analysis of Factors Influencing Inflation in Indonesia |
| title_full_unstemmed | Analysis of Factors Influencing Inflation in Indonesia |
| title_short | Analysis of Factors Influencing Inflation in Indonesia |
| title_sort | analysis of factors influencing inflation in indonesia |
| url | https://jurnal.uii.ac.id/JEP/article/view/356 |
| work_keys_str_mv | AT endriendri analysisoffactorsinfluencinginflationinindonesia |