Open AccessDAMPAK INFLASI TERHADAP PERTUMBUHAN EKONOMI DI INDONESIA
Author(s) -
Doni Satria
Publication year - 2012
Publication title -
ecosains: jurnal ilmiah ekonomi dan pembangunan/ecosains : jurnal ilmiah ekonomi dan pembangunan
Language(s) - English
Resource type - Journals
eISSN - 2655-6480
pISSN - 2302-8408
DOI - 10.24036/ecosains.348757.00
Subject(s) - inflation (cosmology) , economics , indonesian , causality (physics) , monetary economics , economic stability , money supply , supply side , inflation rate , macroeconomics , monetary policy , quantum mechanics , theoretical physics , philosophy , linguistics , physics
The long run relationship between inflation and economic growth has been recognized by macroeconomist in the last three decades. For developing countries inflation effect on economic growth is more supply side phenomena than demand side or economic fluctuation (Basu, 2000). On the other hand stable and low inflation rate in the long run will promote higher output growth. I found significance two way causality between inflation and growth in Indonesia. The result has shown a non linier causality relationship from inflation to economic growth using Indonesian annual data from 1981 to 2010. The data reveals there is long run non linier relationship between inflation and growth.