ANALYSIS OF THE INFLUENCE OF MONEY SUPPLY, INTEREST RATES, AND
EXCHANGE RATES ON INFLATION IN INDONESIA

ANALYSIS OF THE INFLUENCE OF MONEY SUPPLY, INTEREST RATES, AND
EXCHANGE RATES ON INFLATION IN INDONESIA

Exchange Rates, Interest Rates, Inflation, Money Supply.

There are many factors that can affect inflation, both internal and external. The
rate of inflation is also influenced by other factors such as increased economic
activity that drives an increase in aggregate demand not matched by an increase
in aggregate supply due to structural economic constraints. This research aims to
determine the influence of money supply, interest rates, and exchange rates on
inflation in Indonesia, both partially and simultaneously. This is a quantitative
study using secondary (time series) data obtained from the Central Statistics
Agency (BPS), Bank Indonesia, and the Ministry of Finance over a period of 31
years, from 1993 to 2023. The data analysis technique used is the Multiple Linear
Regression Equation. The results of this study indicate that partially, money
supply and interest rates have a positive and significant effect on inflation in
Indonesia, while the exchange rate does not have a significant effect on inflation
in Indonesia. Simultaneously, it is found that money supply, interest rates, and
exchange rates together influence inflation in Indonesia.

Christine Adelina Sihotang, Bakhtiar Efendi, Dewi Mahrani Rangkuty

https://jurnal.stie-aas.ac.id/index.php/IJEBAR

2024

PERI IRAWAN

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