Economic Growth and Inflation: Evidence from Indonesia

Abstract

This study aims to determine the relationship of economic growth withinflation in Indonesia between 2010 and 2014. The research methoduses static data panel analysis with economic growth as the dependentvariable and inflation, investment, and population as independentvariables. Research shows that inflation, investment, and population,where the three variables have the same aim (positive) relationshipwith economic growth. The effect of investment on economic growthis more significant than inflation on economic growth. The positiverelationship between inflation and economic relations shows thatinflation can increase economic growth. This can be maintainedif the government represented by Bank Indonesia can always keepinflation at a low/mild level. Inflation targeting policy needs to bemaintained by referring to the inflation targeting of previous years.How to Cite:Cili, M. R., & Alkhaliq. (2022). Economic Growth and Inflation: Evidence from Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 11(1), 145-160. https://doi.org/10.15408/sjie.v11i1.19848.