Economics, Econometrics and Finance
10 months ago

High Loan Interest Rates Linked to Increased Inflation in Indonesia

Jurnal Indonesia Sosial Sains
Analysis of Affecting Variables Actual Inflation Rate at Indonesia
Andy Chandra, Kemal Taufik, Cicih Ratnasih

Paper Summary

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The study looked at what factors affect the actual inflation rate in Indonesia over the past decade. The researcher found that only the loan interest rate had a significant impact on the actual inflation rate, meaning that higher loan interest rates lead to higher inflation. Other factors like the inflation target rate, previous inflation rate, and gross domestic product did not show a significant effect on the actual inflation rate.