This study aims to analyze the influence, exchange rates and interest rates on economic growth.Inflation, exchange rates and interest rates are important variables in macroeconomics. This studyuses time series data from 1980-2017. To see the effect of the independent variables on thedependent variable, the Ordinary Least Square analysis model is used. The research resultsobtained: conversion, exchange rates and interest rates are negative and significant to economicgrowth. Increased inflation, the exchange rate and interest rates will contribute to a decline ineconomic growth. For this we need monetary policy that is able to provide stimulus to growth, apriority for increasing interest rates. Bank Indonesia as a monoteric authority holder can do it throughmonetary policy. Inflation and the exchange rate are the consequences of economic openness.Keywords: Inflation, Exchange Rates, Interest Rates and Economic Substitution
Copyrights © 2026