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The Effect of Money Supply and Interest Rates on Inflation in Indonesia

Title: The Effect of Money Supply and Interest Rates on Inflation in Indonesia
Authors: Pisganidy, Marla; Awaluddin, Muhammad
Source: INOVASI: Jurnal Ekonomi, Keuangan, dan Manajemen; Vol. 21 No. 1 (2025): Februari; 105-110 ; 2528-1097 ; 0216-7786
Publisher Information: Fakultas Ekonomi dan Bisnis Universitas Mulawarman
Publication Year: 2025
Subject Terms: Inflation; Money Supply; Interest Rate
Description: The determinant of a country with a stable economy is measured by the inflation rate which is the main factor in economic development, Inflation is a situation where price increases occur continuously in one period. The purpose of this study is to see the influence of Money Supply and Interest Rates in Indonesia. This research method uses ECM (Error Correction Model) and the data used is data from the period 2005 – 2020. The results of this study show that the Money Supply has a significant effect on Inflation. For interest rates, it shows results that have a significant effect on inflation. Based on the results of the study, in the long term the variable amount of money supply (X1) has no effect on the variable inflation (Y) in Indonesia, while in the short term the amount of money supply has an effect on inflation in Indonesia. For the Variable Interest Rate (X2) both in the long and short term it affects the inflation variable (Y) in Indonesia
Document Type: article in journal/newspaper
File Description: application/pdf
Language: English
Relation: https://e-journals2.unmul.ac.id/index.php/index/article/view/3504/1548
DOI: 10.30872/jinv.v21i1.3504
Availability: https://e-journals2.unmul.ac.id/index.php/index/article/view/3504; https://doi.org/10.30872/jinv.v21i1.3504
Rights: Copyright (c) 2025 Marla Pisganidy, Muhammad Awaluddin ; https://creativecommons.org/licenses/by-sa/4.0
Accession Number: edsbas.AABFC9F1
Database: BASE