ANALYSIS OF INFLATION AND INTEREST RATES ON THE ECONOMIC GROWTH IN INDONESIA

Abstract

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.