Business and Economic Analysis Journal
Vol 1, No 2 (2021): November 2021

The Effect of Interest Rates, Money Supply and Exchange Rate on Inflation in Indonesia and Libya




Article Info

Publish Date
16 Nov 2021

Abstract

This research purposed to analyse the effect of changes in interest rates against inflation, to analyse the effect of money supply to inflation, to analyze the effect of rupiah exchange rate on inflation. In this study the authors used a quantitative approach. This research is a secondary and quantitative data study using sample data on interest rates, the money supply and the exchange rate in Indonesia and Libya in 2005-2019. With this method the objectives to be achieved must be able to describe certain characteristics of a population.  Data analysis technique used is ECM (Error Correction Mechanism) Model with EViews programs. Based on the result and analysis, the conclusion are as follows; there is no significant influence between Interest Rate on Inflation in Indonesia. In Libya, we will not use IR (Interest rate) variables because the data is not achieved the ECM criteria and cointegration. There is significant influence between Money supply on Inflation, in both Indonesia and Libya. There is no significant influence between Exchange rate on Inflation in Indonesia and Libya.

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Journal Info

Abbrev

beaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Business and Economics Analysis Journal is a journal published by Universitas Negeri Semarang-Indonesia who only publish a scientific research in the field of economics science, business, accounting and management. This journal also receive all of articles from developing and developed countries. ...