Economic Journal of Emerging Markets
Volume 13 Issue 1, 2008: English Version

Analysis of Factors Influencing Inflation in Indonesia

Endri Endri (Unknown)



Article Info

Publish Date
06 May 2009

Abstract

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

Copyrights © 2008






Journal Info

Abbrev

JEP

Publisher

Subject

Economics, Econometrics & Finance

Description

The Economic Journal of Emerging Markets (EJEM) is a peer-reviewed journal which provides a forum for scientific works pertaining to emerging market economies. Published every April and October, this journal welcomes original research papers on all aspects of economic development issues. The journal ...