The Influence of the Exchange Rate, Money Supply, Exports, Bank Indonesia's Reference Interest Rates and the Price of Gold on Inflation in Indonesia
1Silvia Puspita Sari, 2Meiran Panggabean
1,2Tanjungpura University, Indonesia
https://doi.org/10.47191/jefms/v7-i5-69ABSTRACT:
This research aims to examine and analyze the influence of the exchange rate, money supply, exports, Bank Indonesia reference interest rates, and gold prices on inflation in Indonesia. The data is secondary time series data from 2000Q1 to 2023Q3 obtained from Bank Indonesia, the Central Statistics Agency, and the London Bullion Market Association (LBMA). This research uses a quantitative approach with the Error Correction Model (ECM) research method to determine the long-term and short-term effects between variables. The data processing tool uses the statistical application E Views- 10. The results of data analysis show that in the long term the money supply, exports and the BI reference interest rate have an effect on inflation in Indonesia, while the Rp/USD exchange rate and the price of gold have no effect on inflation in Indonesia. Indonesia in the long term. Then, in the short term, only the money supply and Bank Indonesia's benchmark interest rate have an effect on inflation in Indonesia, while the Rp/USD exchange rate, exports and gold prices have no effect on inflation in Indonesia in the short term.
KEYWORDS:
Inflation, Exchange Rate, Money Supply, Exports, BI Reference Interest Rate, Gold Price.
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