THE IMPACT OF INFLATION ON ECONOMIC GROWTH (CASE STUDY IN INDONESIA 1987-2016)
Abstract
Economic growth is a key in developing a country. The amount of how much economic growth can develop a country can be seen in how it affects everything starting from the amount of supply in a country. Economic growth also showed the extent to which economic activity will affect additional income of the people within a given period. Economic growth can be interpreted as a process that the changes felt in the long term and it can be measured by using GDP growth or in this case the change in total output. Another reason why economic growth is important is that since it is affected by GDP growth, then every time there is an increase in total output, that means the economic growth increased and so will the prosperity of the country. However, Economic Growth does not get affected by only the GDP growth, but also other factors like inflation. This research aims to analyse the impact of inflation towards economic growth in a given period of time, and in this research, the period will be starting from 1987 until 2016.
This research uses Ordinary Least Square or OLS to determine the effect of independent variables on the dependent variable. The results obtained in this research indicate that inflation affect economic growth
Keywords: Economic growth, inflation, GDP growth.Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).