Analysis the Effect of Money Supply and Third-Party Funds to the Inflation Rate through Gross Domestic Product in Indonesia Period 2008-2017

Abstract

The objective of this research is to determine the effect of money supply and third-party funds to the inflation rate through Gross Domestic Product (GDP) in Indonesia. The type of data is secondary data. This research used time series data from 2008 to 2017 from various valid data source.The data then were analyzed by multiple regressionswith Two-Stage Least Square (2SLS) approach processed byEviews 9.0.According to resultsanalysis of this study, there is a positive and significant effect between money supply and third-party funds to GDP directly. Partially, it is found that money supply has no significant effect to inflation through GDP and Third-party funds have negative and significant effect to inflation through GDP.