Nomico
Vol. 2 No. 1 (2025): Nomico-February

The Effect of Monetary Policy on Inflation: an Empirical Approach

Loso Judijanto (IPOSS Jakarta)
Olyvia Rosalia (Universitas Islam Negeri Sulthan Thaha Saifuddin Jambi)
M. Siddiqi (Pascasarjana UIN STS Jambi)
Firayani Firayani (Universitas Islam Negeri Sulthan Thaha Saifuddin Jambi)
Anis Noviya (Universitas Jambi)



Article Info

Publish Date
28 Feb 2025

Abstract

This study explores the impact of monetary policy on inflation rate, focusing on the role of interest rates, money supply, and bank credit. Using a quantitative approach, this research analyzes how these variables influence inflation through statistical methods. The study employs multiple linear regression analysis to determine the relationships between the independent and dependent variables. Secondary data from official financial reports and economic publications provide the basis for analysis. The findings suggest that interest rates have a negative relationship with inflation, meaning an increase in interest rates can help reduce inflationary pressures. Meanwhile, money supply and bank credit have a positive relationship with inflation, indicating that higher liquidity and credit availability contribute to rising inflation. The statistical tests confirm that the model used is valid and reliable, ensuring accurate interpretations of the results. This study underscores the importance of monetary policy adjustments in maintaining price stability. Policymakers should carefully manage interest rates, money supply, and credit distribution to effectively control inflation and promote economic stability.

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Journal Info

Abbrev

NJ

Publisher

Subject

Economics, Econometrics & Finance

Description

The journal publishes original articles on current issues and trends occurring internationally in accounting, financial accounting, public sector accounting, auditing, economics, economics education, development economics, economic statistics, monetary economics, international economics, ...