Jurnal Ilmiah Ilmu Terapan Universitas Jambi
Vol. 8 No. 1 (2024): Volume 8, Nomor 1, June 2024

MODELING INFLATION DYNAMICS USING THE LOGISTIC MODEL: INSIGHTS AND FINDINGS

Kapçiu, Rinela (Unknown)
Preni, Brikena (Unknown)
Kalluçi, Eglantina (Unknown)
Kosova, Robert (Unknown)



Article Info

Publish Date
29 Jun 2024

Abstract

This paper examines applying the logistic model, frequently used in biology, to analyze inflation patterns in dynamic economic systems. The primary objective is to simulate and analyze the complex dynamics of inflation, thus providing new insights into the stability of financial institutions. Numerical methods such as Euler's Method, Runge-Kutta Method (RK4), and Adams-Bashforth-Moulton's method were used to simulate inflation patterns by discretizing the logistic equation. The data utilized in this research were obtained from INSTAT, BoA, MoF, and Eurostat, with quarterly results from 1995 to 2023. The simulation results indicated that the RK4 and Adams-Bashforth-Moulton methods yielded more precise and reliable inflation forecasts than Euler's. The logistic model represented the non-linear aspects of inflation dynamics well, emphasizing the necessity of using suitable numerical approaches. The study's findings highlight the effectiveness of the logistic model in economic analysis, specifically in forecasting inflation trends. Enhanced closure approaches have proven their effectiveness in analyzing intricate economic data, providing crucial insights into the stability of inflation, and informing policy formulation. This study utilizes the logistic model to analyze inflation dynamics, offering a unique methodology for comprehending and forecasting inflation in economic systems. An analysis of several closure techniques reveals a novel aspect of financial modeling tools. The findings indicate that incorporating advanced numerical methods can significantly improve the precision of economic models. These findings significantly impact economic research and policy formulation, especially in devising measures to manage inflation and ensure financial stability.

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Journal Info

Abbrev

JIITUJ

Publisher

Subject

Education Engineering Industrial & Manufacturing Engineering

Description

JIITUJ publish the result of research on applied science and education (Research of applied science and education) such as: the research result on applied science and education such as curriculum development and learning, character education, technology and instructional innovation, and learning ...