Jurnal Inovasi Bisnis (Inovbiz)
Vol 12, No 1 (2024)

The Effect of Money Supply and Interest Rates on the Value of Inflation in North Sumatra

Muhammad Arief Tirtana (UNIVERSITAS SUMATERA UTARA)



Article Info

Publish Date
26 Jun 2024

Abstract

Inflation is an increase in the price of an item that occurs continuously. This study aims to determine the effect of money supply and interest rates on inflation in Indonesia for the period 2016-2022. The type of data in this study is secondary data obtained from the Central Bureau of Statistics. Based on the results of hypothesis testing with the Multiple linear Regression Model shows that the money supply variable has a positive and insignificant effect on the inflation rate in Indonesia, while the interest rate variable has a positive and significant effect on inflation as indicated by a probability value of 0.0046 smaller than alpha 0.005. Related to the results of this can be due to the policies and strategies implemented by the government the government is still in a less effective condition to suppress existing inflation, so the government should be more relevant in making policies so that inflation does not continue to decline and even become a deficit that has an impact on economic stability in Indonesia. Therefore, the government needs to implement monetary policy carefully so that the economy in Indonesia is stable.Keywords:  Inflation, Money Supply, Interest Rate

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Journal Info

Abbrev

IBP

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Inovasi Bisnis (Inovbiz) focuses on how we gain knowledge through innovation and how knowledge encourages the innovation both in economics and business. It is provided for writer, researcher, professor, and practitioner who want to publish their research reports or articles, theoritical or ...