| dc.description.abstract | Inflation impact on macroeconomic performance such as the exchange rate, economic
growth, interest rates, exports, imports, wages and the price index of stocks and securities in the
capital markets. To get an idea relevant to the topics raised in this study then formulated the
research model on inflation and its implications on the fundamentals of the Indonesian economy
with multiple equation model approach, semi logarithm, error correction model (ECM), and
multiple equations, partial adjustment model (PAM), this phenomenon shows that the increase
in the level of SBI will increase the efficiency of the financial sector to further boost the amount of
lending and reduce the amount of bad loans. While the value of the variable regression on the
amount of currency in circulation amounted -132.7688 means that if the amount of currency in
circulation rose one percent will push down inflation of -132.76 percent. Circumstances indicate
that the increase in the amount of currency will encourage the real sector to absorb the amount of
money circulating in the economy such as the increase in consumption, investment, production,
etc., thereby decreasing the rate of inflation | en_US |
