Jurnal Ekonomi Pembangunan
Vol. 22 No. 1 (2024): Jurnal Ekonomi Pembangunan

Unraveling the Dynamic Impact of Money Supply, Interest Rates, and Corruption on Inflation: Evidence from Indonesia

Kurniasih, Cut Endang (Unknown)
Budiartiningsih, Rahmita (Unknown)
Sari, Lapeti (Unknown)
Aulia, Ando Fahda (Unknown)
Aqualdo, Nobel (Unknown)
Zuryani, Hilmah (Unknown)



Article Info

Publish Date
21 Jun 2024

Abstract

This study investigates the impact of money, interest rates, and corruption on inflation in Indonesia. This data was obtained from Transparency International and the World Bank from 1995 to 2022. The Auto Regressive Distributed Lag (ARDL) model will be utilized as the estimation method. These findings reveal significant long-term relationships between the variables studied. In the long run, inflation in Indonesia is largely determined by corruption, interest rates, and the money supply. Apart from that, this significant influence is also found in short-term estimation results with different relationships. A decrease in CPI (high corruption) increases the inflation rate significantly, and vice versa. This demonstrates how crucial it is to set up strategies and policies to keep the inflation rate stable for a sustainable economy that doesn't just rely on financial tools but also lessens the likelihood of government-caused corruption and sources of income.

Copyrights © 2024






Journal Info

Abbrev

jep

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi Pembangunan is a peer-reviewed journal that provides a forum for scientific works pertaining to Development Economics. Published twice in a year (June and December). This Journal has p-ISSN 1829-5843, and e-ISSN 2685-0788. This journal was first published since June 2003 by the ...