ANALYSIS OF INFLATION AND INTEREST RATES ON THE ECONOMIC GROWTH IN INDONESIA
This study aims to determine the effect of inflation and interest rate on economic growth in Indonesia and to determine the strategy of increasing economic growth in Indonesia. The data were analyzed using descriptive analysis and regression analysis. The descriptive analysis explained that the growth of inflation and interest rate. Based on regression analysis, there is a positive influence between inflation on economic growth and the negative influence between the interest rate on economic growth in Indonesia. Strategies for increasing economic growth through human resources, entrepreneurs, employment, investment, export, and infrastructure.
Boediono. 2014. Synopsis Series Introduction to Science - No. 5 Macroeconomics. Yogyakarta: BPFE (translated from Indonesian: Seri Sinopsis Pengantar Ilmu - No. 5 Ekonomi Makro. Yogyakarta: BPFE).
Mutinda, D. M. (2014). The effect of lending interest rate on economic growth in Kenya. A Research Project, The University of Nairobi, Kenya.
Ayo, O. S., Ifeakachukwu, N. P., & Ditimi, A. (2011). A trivariate causality test among economic growth, government expenditure and inflation rate: Evidence from Nigeria. The Journal of World Economic Review, 6(2), 189-199.
Dornbusch, Rudiger, Stanley Fischer, dan Richard Startz. 2008. Macroeconomics. 10th Eds. New York: McGraw-Hill Companies.
Guru, S. 2015. The structural theory of inflation explained. Retrieved from doi: http://www.yourarticlelibrary.com/macroeconomics/inflationmacroeconomics/thestructuraltheory ofinflationexplained/37980/. Accessed on 12/15/2015.
Ismail, 2010. Banking Management. Jakarta: Kencana Prenada Media Group. (translated from Indonesian: Manajemen Perbankan. Jakarta: Kencana Prenada Media Group).
Latumaerissa, Julius.R, 2011. Banks and Other Financial Institutions. Jakarta: Salemba Empat (translated from Indonesian: Bank dan Lembaga Keuangan Lain. Jakarta: Salemba Empat).
Mamo, F.T. 2012. Economic growth and inflation: A panel data analysis. Master’s Thesis. Department of Social Sciences, Economics, Södertörns University, Sweden.
Mankiw, Gregory N. 2004. Principles of macroeconomics. 3rd eds. The Dryden Press
Mankiw, Gregory. 2012. Principles of Macroeconomics. 6th eds. Canada: Cengage Learning.
Maiga, F. K. (2017). Impact of interest rate on economic growth in Nigeria. Pyrex Journal of Business and Finance Management Research, 3(3), 98-111.
Mishkin, F. S. (2008). Money Economics, Banking and Financial Markets. Jakarta: Salemba Empat. (translated from Indonesian: Ekonomi Uang, Perbankan, dan Pasar Keuangan. Jakarta: Salemba Empat).
Novianto, A., SBM, N., & Nugroho, S. B. M. (2011). Analysis of the effects of exchange rates (exchange rates) of US Dollar / Rupiah (US $ / Rp), SBI Interest Rates, Inflation, and amount of money supply (M2) on the Composite Stock Price Index (CSPI) on the Indonesia Stock Exchange (BEI) 1999.1– Period 2010.6. Doctoral dissertation. Universitas Diponegoro. (translated from Indonesian: Analisis pengaruh nilai tukar (Kurs) Dolar Amerika/Rupiah (US $/Rp), Tingkat Suku Bunga SBI, Inflasi, dan jumlah uang beredar (M2) terhadap Indeks Harga Saham Gabungan (IHSG) di Bursa Efek Indonesia (Bei) Periode 1999.1–2010.6. Doctoral dissertation. Universitas Diponegoro).
Obansa, S. J., Okoroafor, O. D., Aluko, O. O., & Eze, M. (2013). Percieved Relationship between Exchange Rate, Interest Rate and Economic Growth in Nigeria: 1970-2010. American journal of humanities and social sciences, 1(3), 116-124.
Putong, I., & Andjaswati, N. D. (2010). Introduction to Macro Economics. Jakarta: Mitra Wacana Media. (translated from Indonesian: Pengantar Ekonomi Makro. Jakarta: Mitra Wacana Media).
Samuelson, P. A., & Nordhaus, W. D. (2004). Macroeconomics. Jakarta: PT. Media Edukasi. (translated from Indonesian: Ilmui Makro Ekonomi. Jakarta: PT. Media Edukasi).
Sattarov, K. (2011). Inflation and Economic Growth. Analyzing the Threshold Level of Inflation.: Case Study of Finland, 1980-2010. Master Thesis, 15 ECTS. Universitet UMEA.
Snowdon, B., & Vane, H. R. (2005). Modern macroeconomics: its origins, development and current state. Edward Elgar Publishing.
Sukirno, S. (2013). Macroeconomics introduction theory. 3rd Eds. Jakarta: Rajawali Pers. (translated from Indonesian: Makroekonomi Teori Pengantar. Edisi ketiga. Jakarta : Rajawali Pers).
Sunariyah. (2013). Introduction to capital market knowledge. Yogyakarta: UPP-STIM YKPN. (translated from Indonesian: Pengantar pengetahuan pasar modal. Yogyakarta: UPP-STIM YKPN).
Udoka, C. O., & Anyingang, R. A. (2012). The effect of interest rate fluctuation on the economic growth of Nigeria, 1970-2010. International Journal of Business and Social Science, 3(20), 295-302.
Wuri, J. (2018). The role of investment to the Indonesian economic growth. Journal of Business and Finance in Emerging Markets, 1(2), 161-174.
Copyright (c) 2019 SSBRN
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Retained Rights/Terms and Conditions of Publication
1. As an author you (or your employer or institution) may do the following:
- make copies (print or electronic) of the article for your own personal use, including for your own classroom teaching use;
- make copies and distribute such copies (including through e-mail) of the article to research colleagues, for the personal use by such colleagues (but not commercially or systematically, e.g. via an e-mail list or list server);
- present the article at a meeting or conference and to distribute copies of the article to the delegates attending such meeting;
- for your employer, if the article is a ‘work for hire’, made within the scope of your employment, your employer may use all or part of the information in the article for other intra-company use (e.g. training);
- retain patent and trademark rights and rights to any process, procedure, or article of manufacture described in the article;
- include the article in full or in part in a thesis or dissertation (provided that this is not to be published commercially);
- use the article or any part thereof in a printed compilation of your works, such as collected writings or lecture notes (subsequent to publication of the article in the journal); and prepare other derivative works, to extend the article into book-length form, or to otherwise re-use portions or excerpts in other works, with full acknowledgement of its original publication in the journal;
- may reproduce or authorize others to reproduce the article, material extracted from the article, or derivative works for the author’s personal use or for company use, provided that the source and the copyright notice are indicated, the copies are not used in any way that implies JBFEM endorsement of a product or service of any employer, and the copies themselves are not offered for sale.
- All copies, print or electronic, or other use of the paper or article must include the appropriate bibliographic citation for the article’s publication in the journal.
2. Requests from third parties
Although authors are permitted to re-use all or portions of the article in other works, this does not include granting third-party requests for reprinting, republishing, or other types of re-use. Requests for all uses not included above, including the authorization of third parties to reproduce or otherwise use all or part of the article (including figures and tables), should be referred to JBFEM.
3. Author Online Use
- Personal Servers. Authors and/or their employers shall have the right to post the accepted version of articles pre-print version of the article, or revised personal version of the final text of the article (to reflect changes made in the peer review and editing process) on their own personal servers or the servers of their institutions or employers without permission from JBFEM, provided that the posted version includes a prominently displayed JBFEM copyright notice and, when published, a full citation to the original publication, including a link to the article abstract in the journal homepage. Authors shall not post the final, published versions of their papers;
- Classroom or Internal Training Use. An author is expressly permitted to post any portion of the accepted version of his/her own articles on the author’s personal web site or the servers of the author’s institution or company in connection with the author’s teaching, training, or work responsibilities, provided that the appropriate copyright, credit, and reuse notices appear prominently with the posted material. Examples of permitted uses are lecture materials, course packs, e-reserves, conference presentations, or in-house training courses;
- Electronic Preprints. Before submitting an article to an JBFEM, authors frequently post their manuscripts to their own web site, their employer’s site, or to another server that invites constructive comment from colleagues. Upon submission of an article to JBFEM, an author is required to transfer copyright in the article to JBFEM, and the author must update any previously posted version of the article with a prominently displayed JBFEM copyright notice. Upon publication of an article by the JBFEM, the author must replace any previously posted electronic versions of the article with either (1) the full citation to the work with a Digital Object Identifier (DOI) or link to the article abstract in JBFEM homepage, or (2) the accepted version only (not the final, published version), including the JBFEM copyright notice and full citation, with a link to the final, published article in journal homepage.
4. Articles in Press (AiP) service
JBFEM may choose to publish an abstract or portions of the paper before publishing it in the journal. Please contact our email@example.com immediately if you do not want us to make any such prior publication for any reason, including disclosure of a patentable invention.
5. Author/Employer Rights
If you are employed and prepared the article on a subject within the scope of your employment, the copyright in the article belongs to your employer as a work-for-hire. In that case, JBFEM assumes that when you sign this Form, you are authorized to do so by your employer and that your employer has consented to the transfer of copyright, to the representation and warranty of publication rights, and to all other terms and conditions of this Form. If such authorization and consent has not been given to you, an authorized representative of your employer should sign this Form as the Author.
6. SSBRN Copyright Ownership
It is the formal policy of JBFEM to own the copyrights to all copyrightable material in its technical publications and to the individual contributions contained therein, in order to protect the interests of the JBFEM, its authors and their employers, and, at the same time, to facilitate the appropriate re-use of this material by others. JBFEM distributes its technical publications throughout the world and does so by various means such as hard copy, microfiche, microfilm, and electronic media. It also abstracts and may translate its publications, and articles contained therein, for inclusion in various compendiums, collective works, databases and similar publications.